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You are raising money for a new project, which is expected to pay $250K as a lump sum in three years. There will be no

You are raising money for a new project, which is expected to pay $250K as a lump sum in three years. There will be no other cash flows. You approach investors for funding, and they inform you that they require an average annual return of 20% because your enterprise is rather risky to them. How much money will the investors provide today, to be able to earn the required rate of return from your project?

a.

100K

b.

175K

c.

145K

d.

125K

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