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VI . ( 3 points ) An investor is considering buying a portion of a business. If she places $ 2 5 0 , 0

VI.(3 points) An investor is considering buying a portion of a business. If she places $250,000, the expected payoff is $50,000 every year. Assuming that the business does not change in value and that the annual interest rate remains constant. Calculate the annual cost when the interest rate is 21% and when the interest rate is 6%. Afterwards, determine whether the investment is good based on the interest rate. To receive full credit, make sure to show the values of the expected costs.
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