Question
An investment has the following cash flow maturity (year) 0 1 2 3 cash flow () -500 140 132 324 A pereon whose opportunity-cost of
An investment has the following cash flow maturity (year) 0 1 2 3 cash flow () -500 140 132 324 A pereon whose opportunity-cost of capital is i = 6%, asks for a financing of 200, to be repaid with two instalments, with constant amortization quota, at times 1 and 2, the financing rate is j = 7%. Find the APV for the person.
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Quantitative Financial Risk Management
Authors: Constantin Zopounidis, Emilios Galariotis
1st Edition
1118738187, 978-1118738184
