Question
1. How much is a building worth that is expected to produce cash flows of $100000 in 1 year and $400000 in 2 years if
1. How much is a building worth that is expected to produce cash flows of $100000 in 1 year and $400000 in 2 years if the cost of capital is 11.0 percent? Since there's no information on expected cash flows at times other than in 1 and 2 years, assume those are the only times with non-zero expected cash flows.(Round the value to 0th decimal to get a whole number
2. A building that is worth $700000 and has a cost of capital of 30% is expected to produce cash flows of $200000 in 1 year and X in 3 years. What is X?(Round the value to 0th decimal to get a whole number)
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