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You are considered investing in a security which will return before-tax cash flows to you of $5000 in the first year, $1,200 in the second
You are considered investing in a security which will return before-tax cash flows to you of $5000 in the first year, $1,200 in the second year, and $2,000 in the third year. If your personal tax rate is 30% and you are hoping to earn 6.5%, what would you be willing to pay for this investment?
Select one:
a. $5185.97
b. $6285.04
c. $7408.53
d. $8402.98
e. $4894.74
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