Question
Consider the following two cash flows: CF#1: t=1: X; t=2: 2X; t=4: X CF#2: t=0: $100; t=1: $200; t=2: $300; t=3: $400; t=4: $500 Suppose
Consider the following two cash flows: CF#1: t=1: X; t=2: 2X; t=4: X CF#2: t=0: $100; t=1: $200; t=2: $300; t=3: $400; t=4: $500 Suppose the interest rate between t=0 and t=1 is 2% and it increases from there by 2% each year. Find the X that makes the two cash flows equivalent (within $20 of which of the following)? Question 9 options:
539
579
619
659
None of the above
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Capital Flows Financial Markets And Banking Crises
Authors: Chia-Ying Chang
1st Edition
0415749557, 978-0415749558
