Present-value techniques to estimate yield on investment

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Reference no: EM131848208

Elliott Dumack must earn a minimum rate of return of 16 %mto be adequately compensated for the risk of the following investment:

Initial Investment $23,288

End of Year Income

1 $9,081

2 $7,897

3 $6,481

4 $4,214

5 $2,600

a. Use present-value techniques to estimate the yield on this investment.

Reference no: EM131848208

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