Question regarding the good investment

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Your client has provided, for your evaluation, an investment which pays $20,000 in 12 months, $15,000 in 3 years, $10,000 in 4 years and a further $40,000 in 7 years. The interest rate over the period of the investment is a nominal rate of 18% p.a., compounded monthly. If your client can buy the investment today for $50,000 would you recommend that this is a good investment? Why or why not?

Reference no: EM132480938

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