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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 $200 each year for two years

Consider P. Ltd, a one-asset firm with no liabilities. Assume that the asset will generate end-of-year cash flows of $200 each year for two years and then will have zero value. The interest rate in the economy is 10% What is the total revenue for the second year?

200

210

220

400

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