Suppose a broker offers you an investment that will provide the following future cash flows:

$1000 in exactly 1 year
$2000 in exactly 2 years
$4000 in exactly 3 years
$8000 in exactly 4 years

If you require an average annual rate of return of 11.5% on this investment, what is the maximum price that you would be willing to pay today? [Do not round intermediate steps to less than 4 decimal places. Round your final answer to 2 decimal places, e.g 1234.56]

Maximum price = $?

Answer rating: 100% (QA)

The present value of the cash flows is calculated as follows PV 10... View the full answer