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Assume that today is 1/1/18. Assume that you expect the following cash flows of EL, INC. CASH FLOWS 1/1/18 1/1/19 1/1/20 1/1/21 1/1/22 $10 $20
Assume that today is 1/1/18. Assume that you expect the following cash flows of EL, INC.
CASH FLOWS
1/1/18 1/1/19 1/1/20 1/1/21 1/1/22
$10 $20 $0 $10
Assume that you will buy one share today (1/1/18) and sell your one share 3 years from today (1/1/21). How much do you expect to sell your one share for on 1/1/21? Assume that these are all of the cash flows that EL will produce. Also assume that a fair rate of return for an investment of like risk is 8%. Record your answer in dollars and cents.
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