I would like the formula to be able to figure out this problem on my own. I am stuck on how to come up with the answer, I do not want the answer. If you are able to give me an example of the formula that would be great.

Thanks,

P6-13 Valuation of assets Using the information provided in the following table, find the

value of each asset today.

X

Cash flow

Asset Year Amount Appropriate required return

A 8%

1 $ 3,000

2 $3,000

3 $3,000

B 1 through infinity

$ 500 5%

C 6%

1 $ 0

2 0

3 0

4 0

5 $45,000

D 4%

1 through 5 $ 1,500

6 $8,500

E 7%

1 $ 2,000

2 $3,000

3 $5,000

4 $7,000

5 $4,000

6 $1,000

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