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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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