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An investment costs $1200 up front and $800 five years from now. It yields returns of $400 every fourth year (in years 4, 8, 12, etc) for the next 20 years.

In addition, in year 20, it will pay off an additional amount of $600. If the discount rate is 5%, is this a worthwhile investment?

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Financial Management, Finance

Category:- Financial Management
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