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You are offered a chance to buy an asset for $8,000 that is expected to produce cash flows of $750 at the end of Year
You are offered a chance to buy an asset for $8,000 that is expected to produce cash flows of $750 at the end of Year 1, $1,000 at the end of Year 2, $850 at the end of Year 3, and $6,250 at the end of Year 4. What rate of return would you earn if you bought this asset?
Could someone help me with how to solve this using a financial calculator? Thanks in advance.
a. 2.51%
b. 2.01%
c. 3.51%
d. 4.01%
e. 3.01%
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