PROBLEMS (10 points each). Report your answers to two decimal places. Show your work to receive credit. 1. Suppose that an asset generates cash flows of $200, 500, and $200 at the end of years one, two, and three, respectively. If your required rate of return is 6 percent, what is the maximum price you would be willing to pay for this asset today? che +cha+cf; = 900 ace 3 2300 910 9/3 300 x Answer: 6000 $

PROBLEMS (10 points each). Report your answers to two decimal places. Show your work to receive credit. 1. Suppose that an asset generates cash flows of $200,500, and $200 at the end of years one, two, and three, respectively. If your required rate of return is 6 percent, what is the maximum price you would be willing to pay for this asset today? CD1+CF2+CF13aCO=900=3001006=x300