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You have a savings account that earns 5% interest, compounded annually. A friend has offered...

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Accounting

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You have a savings account that earns 5% interest, compounded annually. A friend has offered you an investment opportunity, he says that if you invest in his new business, he will pay you $50.000 a year for the next five years. What is the maximum amount you would be willing to invest in your friend's business? (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1. (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.) Multiple Choice O $237.500 o 2005 o o o $250.000 O $24.75 o

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