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7. I can buy a business that promises a $15,500 cash flow every year for the...

7. I can buy a business that promises a $15,500 cash flow every year for the next 6 years. How much should I pay to acquire this business if I require a 14% rate of return?

A $50,274.35

B $60.000.87

C $60,274.35

D $60,766.87

E None of the above

8 If you purchased the above business for $55,000, then your NPV is… and you …value

A $5,274.35; destroyed

B -$9,533.13; created

C $666.87.13; created

D $766.87.23; created

E None of the above

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