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Your friend offered a chance to buy an asset for $5,000 that is expected to produce cash flows of $850 at the end of Year
Your friend offered a chance to buy an asset for $5,000 that is expected to produce cash flows of $850 at the end of Year 1, $1,000 at the end of Year 2, $750 at the end of Year 3, and $4,250 at the end of Year 4. What rate of return is expected from the purchase of this asset?
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