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Day traders in the stock market make investments, sometimes several in one day and/or several days per week. They are often well informed with multiple
Day traders in the stock market make investments, sometimes several in one day and/or several days per week. They are often well informed with multiple sources of information on their screens and various triggers informing them of buy/sell recommendations. Over the course of the past five years, one such part-time trader has the following net cash flow profile (gains minus losses) and a personal minimum attractive rate of return equal to 9%. End of Year 0 1 2 3 4 5 Cash Flow 0 $220.000 $100,000 $160,000 $140,000 $20,000 Part a Your answer is incorrect. What is the trader's present worth of these cash flows at the end of year o? Click here to access the TVM Factor Table Calculator. $ Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is +5. e Textbook and Media Hint Save for Later Attempts: 1 of 3 used Submit Answer An investor is told that the following cash flow profile has a present value of $10,500 assuming that the money received at each time period is placed into an account where it earns 16% annually. For what value of X will this be true? Year Cash Flow 1 2 $1,500 $1,800 X 3 4 5 6 $2,900 $1,500 $700 7 Click here to access the TVM Factor Table calculator. $ Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is 5
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