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The following investment has an internal rate of return of 20% 0 1 2 -1000 700 600 and it is to be financed by the
The following investment has an internal rate of return of 20%
0 | 1 | 2 |
-1000 | 700 | 600 |
and it is to be financed by the following loan at the cost of financing of 15%
0 | 1 | 2 |
400 | -260 | -230 |
The opportunity cost of capital of a decision maker has the following term structure:
h(0)(0,1)=4%, h(0)(1,2)=6%.
What are the GAPV period quotas?
Find represent the period equity quota (P) and debt quota (D) over periods 1 and 2 rispectively).
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