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Your father paid $10,000 (CF at t = 0) for an investment that promises to pay $677 at the end of each of the next
Your father paid $10,000 (CF at t = 0) for an investment that promises to pay $677 at the end of each of the next 5 years, then an additional lump sum payment of $10,000 at the end of the 5th year. What is the expected rate of return on this investment?
A) 7.13%
B) 6.77%
C) 8.27%
D) 7.88%
E) 7.50%
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