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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 points An investor is considering buying a portion of a business. If she places $ the expected payoff is $ 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 and when the interest rate is 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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