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What is the most the company should invest today

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Reference no: EM131891047

The management of Pretty Umbrellas Inc. expects the following end-of-year cash flows from a new product:

Year 1: $10,000; Year 2: $12,000; Year 3: $22,000; Year 4: $15,000. If management wants to get a minimum of 6% per year rate of return out of this investment, what is the most the company should invest today (i.e., what is the PV)?

Reference no: EM131891047

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