Client can buy the investment today

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An investment pays $40,000 in 3 years and a further $50,000 in 7 years. The interest rate over the period of the investment is a nominal rate of 9% p.a., compounded monthly. If your client can buy the investment today for $60,000 would you recommend that this is a good investment? Why or why not?

Reference no: EM132100150

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