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Hi. This is from Principles of Managerial Finance 14th Edition chapter 6. Warm up exercise. E6-6. You have two assets and must calculate their values
Hi. This is from Principles of Managerial Finance 14th Edition chapter 6. Warm up exercise. E6-6. "You have two assets and must calculate their values today based on their different payment streams and appropriate required returns. Asset 1 has a required return of 15% and will produce a stream of $500 at the end of each year indefinitely. Asset 2 has a required return of 10% and will produce an end-of-year cash flow of $1,200 in the first year, $1,500 in the second year, and $850 in its third year and final year."
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