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You are offered an investment that pays $400 in one year, $500 the next year, and $200 at the end of the third year. You
You are offered an investment that pays $400 in one year, $500 the next year, and $200 at the end of the third year. You can earn 11% on very similar investments. What is the most you should pay for this one? O 898 0884 O 927 912 Question 2 0.5 pts You think you will be able to deposit $4,000 at the end of each of next two years in a bank account paying 8% interest. You currently have $6,000 in the account. How much will you have in 3 years? O 16,883 O 16,544 O 17,226 O 17,574 D Question 3 1 pts Consider the following information for the percentage of sales approach: Sales = $3M, NI = $0.4M, Retention ratio = 0.75 Total Asset = $4M Current Liability $0.2M Long-term debt = $1M Equity = $2.8M If sales increase by 30% (and NI, assets, and CL increase at the same rate), calculate the external financing needed
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