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consider P. Ltd, a one-asset firm with no liabilities. Assume that the asset will generate end-of-year cash flows of $100 each year for three years
consider P. Ltd, a one-asset firm with no liabilities. Assume that the asset will generate end-of-year cash flows of $100 each year for three years and then will have zero value. The interest rate in the economy is 10%.
Question: 1.prepare the b/s, and i/s for year 1, year2, and year 3.
2. if the firm has one more asset. the asset will generate end of year cash flows of $200 each year for three years and then will have zero value. the interest rate in the economy is 10%, prepare the b/s, and i/s for year 1, year2, and year 3.
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