Your friend is looking for investors in a risky business venture. To convince you to participate,...

Your friend is looking for investors in a risky business venture. To convince you to participate, she is offering you a 18% rate of return in your investment. How much should you be willing to invest your friend s company, if she believes that she will be able to pay you the following amounts: $3000 at the end of the first year, $4000 at the end of the second year, and $5000 at the end of years 3, 4, and 5.

		Not enough information given.
		$8,458.26
		None of these.
		$22,000.00
		$13,222.76

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

NO EXCEL FUNCTION IS USED.

PV FACTOR = 1/(1+r)^n = 1/(1+0.18)^n

jeff jeffy answered 5 hours ago

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