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You have been offered an investment that will pay you $500 per month for the next ten years. This investment will cost you $30,000 to

You have been offered an investment that will pay you $500 per month for the next ten years. This investment will cost you $30,000 to undertake.

a) If your required rate of return is 12 percent (compounded monthly), should you make this investment?

b) At this discount rate, what is the most you would be willing to pay for this investment?

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