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What would you be willing to pay for this investment

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Reference no: EM133067867

Question - Mitchell Investments has offered you the following investment opportunity:

$7,000 at the end of each year for the first 7 years, plus

$6,000 at the end of each year from years 8 through 14, plus

$3,000 at the end of each year from years 15 through 21.

How much would you be willing to pay for this investment if you required a 8 percent rate of return?

If the payments were received at the beginning of each year, what would you be willing to pay for this investment?

Reference no: EM133067867

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