Final answer:
To calculate the most you would be willing to pay for an investment that will pay you $53.00 in one year, $136.00 in two years, and $79.00 in three years at a required rate of return of 11.45%, you can use the present value formula. The most you would be willing to pay is approximately $222.92.
Step-by-step explanation:
To calculate the most you would be willing to pay for an investment, you can use the present value formula. The present value is equal to the future cash flows discounted by the required rate of return. In this case, the future cash flows are $53.00, $136.00, and $79.00, and the required rate of return is 11.45%.
Using the formula: Present Value = CF1 / (1 + r)^1 + CF2 / (1 + r)^2 + CF3 / (1 + r)^3
Plugging in the values: Present Value = 53 / (1 + 0.1145)^1 + 136 / (1 + 0.1145)^2 + 79 / (1 + 0.1145)^3
After evaluating the equation, the most you would be willing to pay for this investment is approximately $222.92.