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An investment opportunity will cost $50,000 today. The investment promises the following yearly cash flows plus an unknown balloon payment at the end of
An investment opportunity will cost $50,000 today. The investment promises the following yearly cash flows plus an unknown balloon payment at the end of the fourth year. You would like a 15% APR return on this investment. How much does the balloon payment need to be to achieve this return? YEAR Cashflow 0 1 -$50,000 2 $12,000 $12,000 3 4 $14,000 $14,000
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Answer To find the balloon payment needed to achieve a 15 APR return we need to calculate the ...
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
