What is the maximum you are willing to pay

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Question - Assume your required internal rate of return is 11%. What is the maximum you are willing to pay for a property that is expected to produce the following net cash flows at end of each year?

Year

Cash flow

1

$30,000

2

$30,000

3

$50,000

a. 87,935.27

b. 90,234.45

c. 23,051.50

d. 95,045.15

Reference no: EM132780350

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