You are considering purchasing an investment that pays $5,000 per year for years 1 5, $3,000 per year for years 6 8, and $2,000 per year for years 9 and 10. You require a 14% rate of return and cash flows occur at the end of each year.

Determine: How much are you willing to pay for this investment?

Answer: Which method of Capital Budgeting you use for the decision making and why?