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Question
You are thinking of buying a craft emporium. It is expected to generate cash flows of $30,000 per year in years 1 through 5, and $40,000 per year in years 6 through 10. If the appropriate discount rate is 8%, what amount are you willing to pay for the emporium?A) $135,288
B) $167,943
C) $215,048
D) $228,476
Answer
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