Question
You are offered an investment today by your broker. This investment offers the following stream of cash flows: Yr1 = $12,000.00 Yr2 = $20,000.00 Yr3
You are offered an investment today by your broker. This investment offers the following stream of cash flows:
Yr1 = $12,000.00
Yr2 = $20,000.00
Yr3 = $10,000.00
Yr4 = $16,000.00
If you require a return of 10% for investments of this type of risk, how much should you pay for the investment today?
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The Economics Of Money Banking And Finance
Authors: Peter Howells, Keith Bain
4th Edition
0273710397, 978-0273710394
