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Suppose you can borrow money at an annual interest rate of 8% but can save money at an annual interest rate of only 5%. If
Suppose you can borrow money at an annual interest rate of 8% but can save money at an annual interest rate of only 5%. If you start with zero capital and if the yearly cash ows of an investment are -1000; 900; 800;-1200; 700 should you invest?
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