Mitchell Investments has offered you the following investment opportunity: $8,000 at the end of...
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Accounting
Mitchell Investments has offered you the following investment opportunity:
- $8,000 at the end of each year for the first 7 years, plus
- $2,000 at the end of each year from years 8 through 10, plus
- $1,000 at the end of each year from years 11 through 16.
Use Table II and Table IV or a financial calculator to answer the questions. Round your answers to the nearest dollar.
-
How much would you be willing to pay for this investment if you required a 15 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? $
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