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You launched Project x that is based on the pre - investor's model. Pre - investors denote nonprofessional or non - institutional investors such as
You launched Project that is based on the preinvestor's model. Preinvestors denote nonprofessional or noninstitutional investors such as friends, family and strangers who help to fund the project. However, they expect to see a return on their investment. Nonetheless, Project involves a new social media platform that seeks to generate revenue from user subscriptions. To launch the project, the preinvestors need to invest an accumulative amount of Ryear As subscribers and preinvestors join your venture, you expect the initial investment of R to grow, increasing with R annually for four years years In the first year, you expect the new social media platform will generate R increasing annually with R Calculate the annual discount factor based on a discount rate of
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