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Quiz Me: Quiz Me: 6.4 Understand ... This quiz: 5 point(s) possible This question: 1 point(s) possible Resume later Submit quiz You have two assets
Quiz Me: Quiz Me: 6.4 Understand ... This quiz: 5 point(s) possible This question: 1 point(s) possible Resume later Submit quiz 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 16% and will produce a stream of $100 at the end of each year indefinitely. Asset 2 has a required return of 9% and will produce an end-of-year cash flow of $1,400 in the first year, $1,700 in the second year, and $900 in its third and final year. The value of Asset 1 today is $ (Round to the nearest cent.) The value of Asset 2 today is $ (Round to the nearest cent.)
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