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Beth is planning to buy a Pentium-based PC for rental purposes. She has calculated that her expected cash flows from the investment for the next five years would be as shown below.

$2,500                  $1,500                  $1,000                  $1,000                   $800

Purchase Price = -$4,000

If she earns an annual interest rate of 9.75%, what will be the value of the computer after 5 years?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91624736

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