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It Q7 You are entitled to receive an annual cash flow of amount A at end deach year, starting 1 year from now, except no
It Q7 You are entitled to receive an annual cash flow of amount A at end deach year, starting 1 year from now, except no cash flow at end of fear 4 and year 5. The last cash ! flow will be paid at the end of year 8. At the end of 3rd year after you receive the 3rd payment, someone offeres offers you andnt of lump sum cash! Plow to buy the right to receive the best of the cash flows. At an annual internt rate of ip, chalate the minimum amount of you are willing to accept the offer A= 18,500 2 10% X
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