An entrepreneur tells you that if you invest in his company

Reference no: EM13617560

An entrepreneur tells you that if you invest in his company, he will give you the equivalent of 20% APR for five years. (no monthly compounding) At the end of five years, he will pay you back in a lump sum of $80,000. How much do you invest in this opportunity today to achieve the 20% APR? Show a cash flow diagram. Show your work and final answer(s).

Reference no: EM13617560

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