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An investment scheme requires you to invest $5,000 today and allows you to make annual...

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Finance

An investment scheme requires you to invest $5,000 today and allows you to make annual withdrawal of $2,200 for the subsequent 3 years. At the end of 3 years, you would repeat the scheme by investing another $5,000 and then make annual withdrawal of $2,200 for another 3 years. If this pattern of cash flows continues perpetually, what is the present value of the scheme if your required return is 10%?

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