You have been offered the “opportunity” to finance a busines…
You have been offered the “opportunity” to finance a business for your brother-in-law. He has promised you the following annual payments: CF 1 = 5000 CF 2 = 5000 CF 3 = 7000 CF 4 = 8000 CF 5 = 9000 Your required rate of return is 13%. What is the most you can pay for the investment and still earn your required rate of return?