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The value of an investment comes from its cash flows. Let's say you are intent on receiving $52,000 per year, starting at the end of year one and continuing over 10 years. A lump-sum of $450,000 invested now (year 0) will allow you to receive your desired annual amount. What interest rate is required to make this happen? Use the interpolation method and show your formulas and/or your interpolation triangles.

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Financial Management, Finance

Category:- Financial Management
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