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You are evaluating an investment that pays you the following dividends: $3,000 at the end of year 1 $2,000 at the end of year 2

You are evaluating an investment that pays you the following dividends: $3,000 at the end of year 1 $2,000 at the end of year 2 $2,500 at the end of year 3 The investment ends at the end of the third year. Your interest rate to finance this investment is 10% What is the maximum amount you would be willing to pay today to make this investment?

$0

$6,258

$7,500

$2,500

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