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You are offered an investment today by your broker. This investment offers the following stream of cash flows: Yr 1 = $15,500.00 Yr 2 =
You are offered an investment today by your broker. This investment offers the following stream of cash flows:
Yr 1 = $15,500.00
Yr 2 = $16,000.00
Yr 3 = $16,000.00
Yr 4 = $18,500.00
If you require a return of 8% for investments of this type of risk, how much should you pay for the investment today?
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