Question
Valuation of assetsUsing the information provided in the following table, find the value of each asset today. Cash Flow Asset Year Amount Appropriate required return
Valuation of assetsUsing the information provided in the following table, find the value of each asset today.
Cash Flow Asset Year Amount Appropriate required return
A 1 $3,000 8%
2 3,000
3 3,000
B 1 through $500 5%
C 1 $0 6%
2 $0
3 $0
4 $0
5 $45,000
D 1 through 5 $1,500 4%
6 $8,500
E 1 $2,000 7%
2 3,000
3 5,000
4 7,000
5 4,000
6 1,000
With this problem Im not sure if the way to calculate the valuation is through present value. We have to use excel and it doesn't show a reference on how to calculated it but it does reference present value.
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