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6 you have been approached by an entrepreneur who is...

Question: 6 you have been approached by an entrepreneur who is...

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6. You have been approached by an entrepreneur who is asking you to invest in her new business. She promises the following cash flow. You will pay S1000 now (meaning To), and another $500 in one year. Ten years from now you will receive $2,000. You check with you bank ând learn that your risk-free interest rate is 5%. Should you invest in the new business?

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