What amount should he or she pay for the investment


An investor has an opportunity to purchase an investment that will provide $11,000 at the end of three years, and $50,000 at the end of five years. If the property is expected to be sold at the end of the sixth year for $100,000 and the investor requires a 12% rate of return, what amount should he or she pay for the investment today?

a. $161,000 b. $50,663 c. $81,568 d. $86,864

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Financial Management: What amount should he or she pay for the investment
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