what is the maximum amount you would be willing to pay for an investment opportunity that you expect to bring you $1,100 in one year, 2,420 in 2 years and $3000 per year for the following 5 years given that you require a return of 10% on investment with similar level of risks? 1. 12,398 2. 17,000 3. 14,372 4. 18,520 5. 11,372

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 20P
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what is the maximum amount you would be willing to pay for an investment opportunity that you expect to bring you $1,100 in one year, 2,420 in 2 years and $3000 per year for the following 5 years given that you require a return of 10% on investment with similar level of risks?

1. 12,398

2. 17,000

3. 14,372

4. 18,520

5. 11,372

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