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What would you pay for an investment that provided income stream listed below and could be sold for $1,500,000 at the end of year 4?

  1. What would you pay for an investment that provided income stream listed below and could be sold for $1,500,000 at the end of year 4? Assume your required rate of return is 12%

CF

1

$120,000

2

$150,000

3

$165,000

4

$185,000

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