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undefined You just starting a loaning firm and negotiating to make a 7-year loan of SAR 25,900 to Alkohbar Bakery which will pay you as
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You just starting a loaning firm and negotiating to make a 7-year loan of SAR 25,900 to Alkohbar Bakery which will pay you as follows: SAR 2,500 at the end of Year 1, SAR 5,000 at the end of Year 2, SAR 7,500 at the end of Year 3, Plus a fixed but currently unspecified cash flow, X, at the end of each year from Year 4 through Year 7. AlKhobar Bakery is essentially riskless, so you are confident the payments will be made. For such loan, you require 8% as an appropriate rate of return (compounded annually). What cash flow must the investment provide at the end of each of the final 4 years, that is, what is X? (See the time line) 0 1 2. 5 6 7 3 + + + 2,500 5,000 7,500 X X O A. SAR 2,819.69 OB. SAR 3,625.32 SMITTER scan. any C. SAR 7,250.64 U. PIFY FVV D. SAR 5,971.12 O E. SAR 5,075.45 Snip saved to clipboardStep by Step Solution
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