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Suppose That You Can Invest $8000 in a Business That

Question 65

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Suppose that you can invest $8000 in a business that guarantees you the following cash flows: $4000 at the end of 2 years,$3500 at the end of 4 years,and $2000 at the end of 7 years.Use a graphing calculator to graph the net present value as a function of the interest rate compounded annually.Determine the interest rates for which the investment is profitable.

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