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Would you buy a machine that costs 10,000 today and paid cash flows of 3000, 4000, and 5000 at the end of the next 3
Would you buy a machine that costs 10,000 today and paid cash flows of 3000, 4000, and 5000 at the end of the next 3 years respectively if the correct annual discount rates are 4%, 5% and 6% in each of those years? Prove your answer by showing your cash holdings at the end of 3 years with the machine or if you invested your money at those interest rates.
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