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Your group receives a phone proposal to invest in a new business. The caller informs you that it will take a $70,000 down payment and
Your group receives a phone proposal to invest in a new business. The caller informs you that it will take a $70,000 down payment and the investment will return $10,000 a year for the next 10 years. He tells you that the investment will return 14 percent. If current interest rates are 8 percent, what is the present value of this investment? How did the caller get 14 percent?
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