5. Miguel asks you for advice. How much should he pay today for an investment that...
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5. Miguel asks you for advice. How much should he pay today for an investment that returns $2,500 at the end of year 1, year 2, and year 3 and $5,000 at the end of year 5. Given the risk of the investment you recommend that he discount the future values at 18% compounded annually. Find the most Miguel should pay for this investment. $ 5. Miguel asks you for advice. How much should he pay today for an investment that returns $2,500 at the end of year 1, year 2, and year 3 and $5,000 at the end of year 5. Given the risk of the investment you recommend that he discount the future values at 18% compounded annually. Find the most Miguel should pay for this investment. $
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