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You just starting a loaning firm and negotiating to make a 7-year loan of SAR24100 to AlKohbar Bakery which will pay you as follows: SAR

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You just starting a loaning firm and negotiating to make a 7-year loan of SAR24100 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)

. You just starting a keringtemand regulating to make a mear foon of SAR 24,500 to Akothar Bakery which will day you as low SAR 2,500 at the end of eart SAR 5,000 l the end of 2 SAR 7,500 at the end of Your 3 Pusained but currently rapecified cash flow X.at the end of each year from Year 4 through your 7. Aerobar Bakery's essentially riskless, so you are confider the payments will be made. For such loan, you require as an appropriate rate of retum (compounded annually. What cash flow must the investment provide at the end of each of the final 4 years, that's what is XP (See the time in 2.500 5.000 7.500 DASAR 2.430.20 OD SAR 4300.05 OG HAR 2.136.12 OD SAR 16571 OL SAR 6272.64

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