Question: Note: No need to show steps, only final results needed. 2. You have been offered an investment that is expected to pay you the following

Note: No need to show steps, only final results needed.

2. You have been offered an investment that is expected to pay you the following cash flows at the end of each year:

Year 1 $0

Year 2 $0

Years 3-6 $12,000 per year

Years 7-10 $17,000 per year

Years 11-14 $0 per year

Year 15 $30,000

  1. If you desire to earn a return of 12% on this investment, how much would you be willing to pay for it at time 0? (15 pts)

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