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7) Suppose that next three years you will receive $100, $200, and $300 at the end of the first, second, and the third years, respectively.
7) Suppose that next three years you will receive $100, $200, and $300 at the end of the first, second, and the third years, respectively. Assume that the yearly interest rate is %10. (a) Calculate the present value of this cash flow stream. (10 p.) (b) Calculate the annual equivalent of this cash flow stream. (7 p.) (c) Solve the questions in (a) and (b), if you receive the same amount of money, $100, at the end of each year. (5 p. + 2 p.)
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