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Chance of an investment in a mango orchard

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If you were offered the chance of an investment in a mango orchard in North Queensland and you were promised a return of between $10,000 and $14,000 with equal probability at the end of each year for the next 10 years, what is the maximum amount you would be prepared to pay for such an investment if you required a return of 12%?

Reference no: EM132049087

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