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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: prepare the b/s, and i/s for year 1, year2, and year 3.

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