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Assuming a discount rate of 7%, how much money should you be willing to pay for...

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Finance

Assuming a discount rate of 7%, how much money should you bewilling to pay for an investment that will generate annual cash?ows of $12,000 per year for ten years?

Answer & Explanation Solved by verified expert
3.7 Ratings (348 Votes)
The amount that would be willing to pay for the investment will be the present value of the annual cash inflows discounted at 7 for 10    See Answer
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Assuming a discount rate of 7%, how much money should you bewilling to pay for an investment that will generate annual cash?ows of $12,000 per year for ten years?

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