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What is the most that would be willing to pay

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Problem 1: You are considering the purchase of an investment that would pay you $5,948= per year for Years 1-5, $3,000 per year for Years 6-8, and $2,000 per year for Years 9 and 10. If you require an 8.5 percent rate of return, and the cash flows occur at the end of each year, then what is the most that you would be willing to pay for this investment (i.e. what is the PV of the CF stream)?

Reference no: EM132965299

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