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You are offered an investment with the following conditions: The cost of the investment is 1,000. The investment pays out a sum X at the
You are offered an investment with the following conditions:
The cost of the investment is 1,000.
The investment pays out a sum X at the end of the first year; this payout grows at the rate of 10% per year for 11 years.
If your discount rate is 15%, calculate the smallest X which would entice you to purchase the asset.
(I need detalid answer by using EXEL)
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Public Finance Fundamentals
Authors: K. Moeti
3rd Edition
148512946X, 9781485129462
