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An investment costs $250 now, yields $100 in 1 year and X in 3 years. You can reinvest the year 1 cash flow at an annual interest rate R=5% (note that you earn the cash flow in year 1 so you can reinvest it twice). The ann. HPR is 10%. X = $_

An investment costs $250 now, yields $100 in 1 year and X in 3 years. You can reinvest the year 1 cash flow at an annual interest rate R=5% (note that you earn the cash flow in year 1 so you can reinvest it twice). The ann. HPR is 10%. X = $_

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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An investment costs $250 now, yields $100 in 1 year and X in 3 years. You can reinvest the year 1 cash flow at an annual interest rate R=5% (note that you earn the cash flow in year 1 so you can reinvest it twice). The ann. HPR is 10%. X = $_
Transcribed Image Text:An investment costs $250 now, yields $100 in 1 year and X in 3 years. You can reinvest the year 1 cash flow at an annual interest rate R=5% (note that you earn the cash flow in year 1 so you can reinvest it twice). The ann. HPR is 10%. X = $_
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