Question
Zetterberg Builders is given two options for making payments on a brush hog. Find the value of X such that they would be indifferent between
Zetterberg Builders is given two options for making payments on a brush hog. Find the value of X such that they would be indifferent between the two cash flow profiles if their TVOM is 14% per year compounded yearly.
| End of Year | Series 1 | Series 2 |
| 0 | $150 | $0 |
| 1 | $200 | $0 |
| 2 | $250 | $35X |
| 3 | $300 | $25X |
| 4 | $0 | $15X |
| 5 | $0 | $5X |
Find X
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The Oxford Handbook Of Computational Economics And Finance
Authors: Shu-Heng Chen, Mak Kaboudan, Ye-Rong Du
1st Edition
0199844372, 978-0199844371
