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Suppose a broker offers you an investment that will prowde the following future cash flows: $1000 in exactly 1 year $2000 in exactly 2 years

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Suppose a broker offers you an investment that will prowde the following future cash flows: $1000 in exactly 1 year $2000 in exactly 2 years $4000 in exactly 3 years $8000 in exactly 4 years Your broker tells you that you will recelve an average return of 13.46% if you pay $10,000 for this investment today. Suppose that you require a rate of 12% on this investment. Which of the following is true? A. You would be willing to pay more than $10,000 today for these exact future cash flows. B. It Is impossible to calculate the value of these cash flows. C. You would pay 510,000 , but only it the future cash flows are higher. D. You consider the current price of $10,000 to be too expensive. An investment is expected to generate 10 annual cash flows of $2101 per year, starting in exactly two years. Thece is an additional cash flow of $3060 expected in exactly 14 years. If the approgriate annual interest rate is 5W, compounded annually; what would you expect someone to pay for this irvestment today? TKeep at least 3 decimal places for all intermediate steps. Express your final answer with 2 decimal places (le. 55555.55 and No comvas) Amount invested: 5

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