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You are offered an investment today by your broker. This investment offers the following stream of cash flows: Year Cash Flows 1 48,000 2 80,000
You are offered an investment today by your broker. This investment offers the following stream of cash flows:
Year | Cash Flows |
1 | 48,000 |
2 | 80,000 |
3 | 40,000 |
4 | 32,000 |
Required:
If you require a return of 11% for investments of this type of risk, how much should you pay for the investment today?
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