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Consider the following two cash flows: CF1: 100 at t=0, 200 at t=2, and 300 at t=3 CF2: X at t=1, X at t=2, and
Consider the following two cash flows:
CF1: 100 at t=0, 200 at t=2, and 300 at t=3
CF2: X at t=1, X at t=2, and 2X at t=4
The interest rate rises by 3% every year, so:
between t=0 and t=1: i=0%; between t=1 and t=2: i=3%; between t=2 and t=3: i=6%, etc.
What the value of X that makes the two cash flows equivalent?
Question 3 options:
| 86-106 |
| 106-126 |
| 126-146 |
| 146-166 |
| None of the above |
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