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Based on a careful study of other investment alternatives

An investor can make an investment in a real estate development and receive an expected cash return of $45,000 at the end of six years.

Based on a careful study of other investment alternatives, she believes that a 9 percent annual return compounded quarterly is a reasonable return to earn on this investment. How much should she pay for it today?

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Finance Basics: Based on a careful study of other investment alternatives

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