Question
12. You anticipate a cash flow of $900 at the end of year 1, $600 at the end of year 2, and $800 at the
12. You anticipate a cash flow of $900 at the end of year 1, $600 at the end of year 2, and $800 at the end of year 4. What is the annual equivalent of the cash flow for years 1 through 4? In other words, what constant value “A” could you receive at the end of years 1-4 such that the two cash series of flows are economically equivalent? The interest rate is 6% annual compounded annually.
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
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