Question
You are considering the purchase of an investment that would pay you $5,000 per year for Years 15, $3,000 per year for Years 68, and
You are considering the purchase of an investment that would pay you $5,000 per year for Years 15, $3,000 per year for Years 68, and $2,000 per year for Years 9 and 10. If you require a 8.4 percent rate of return, and the cash flows occur at the end of each year, then what is the MOST you would be willing to pay for this investment?Answer to 0decimal places.
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An Introduction to Investment Banks, Hedge Funds, and Private Equity
Authors: David P. Stowell
1st edition
978-0123745033, 0123745039, 978-9380931074
