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You are presented with an investment opportunity that will give you the following stream of cash flows: nothing for the next 3 years; at the
You are presented with an investment opportunity that will give you the following stream of cash flows: nothing for the next 3 years; at the following year, an amount of $3,000 per year until year 15; and then an amount of $7,000 per year until year 21. If your required rate of return (APR) is 11% compounded annually, what is the present value today of these cash flows?
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