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Problem 1 The following two cash flows Cash Flow (CF-1) and Cash Flow (CF-2) are economically equivalent. The effective interest rate is 13%% per period.
Problem 1 The following two cash flows Cash Flow (CF-1) and Cash Flow (CF-2) are economically equivalent. The effective interest rate is 13%% per period. The value of A (annuity of CF-1) is $1,000 and the value of B (cash flow in year 9 of CF-2) is $8,000. Please follow the questions to find out the unknown X. Round the answer to the nearest integer. Cash Flow (CF-1) 0 1 2 3 4 5 6 7 8 9 B X/3 X/3 Cash Flow (CF-2) X X X/3 1 0 1 2. 3 4 5 6 7 8 9
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