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Your friend would like you to invest in her restaurant. She offers you this investment with the following proforma cash flows to you: $500 in

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Your friend would like you to invest in her restaurant. She offers you this investment with the following proforma cash flows to you: $500 in year 1, $400 in year 2. $800 in year 3 and $1000 in year 4 You believe that you can earn 12% on similar investments. What are you willing to pay for this investment? A $1,507 B. $1,432 C. $1,970 D $1,650

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