Question
The interest rate that makes Alternatives A and B equivalent is in what range? Year / Alt A. / Alt. B 0 / -$1,000 /
The interest rate that makes Alternatives A and B equivalent is in what range?
Year / Alt A. / Alt. B
0 / -$1,000 / -$3,000
1 / 100 / 500
2 / 100 / 550
3 / 100 / 600
4 / 200 / 650
5 / 200 / 650
a.) Less than 2%
b.) Between 2% and 5%
c.) Greater than 5%
d.) There is no interest rate that equates these two cash flow series.
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Dark Finance
Authors: Fabio Mattioli
1st Edition
1503611655, 978-1503611658
