Question: You are considered investing in a security which will return cash flows to you of $5,000 in the first year, $1,200 in the second year,

You are considered investing in a security which will return cash flows to you of $5,000 in the first year, $1,200 in the second year, and $2,000 in the third year. If you are hoping to earn 6.5%, what would you be willing to pay for this investment?

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