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3. Assume that Investment X and Investment Y are expected to generate the following cash flows: Year Annual Cash Flow - Investment A Annual
3. Assume that Investment X and Investment Y are expected to generate the following cash flows: Year Annual Cash Flow - Investment A Annual Cash Flow - Investment B 1 $1500 $2250 2 $2000 $2250 3 $2500 $2250 4 $3000 $2250 5 $3500 $2250 What annual interest rate, rounded to 2 decimal places, would make the present value of these two investments approximately equal (i.e., within S0.10 of each other)?
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Basic Finance An Introduction to Financial Institutions Investments and Management
Authors: Herbert B. Mayo
10th edition
1111820635, 978-1111820633
