Consider the following three cash flow series: End of Year Cash Flow Series A Cash Flow Series B Cash Flow Series C 0 1 2 3 4 5 -$1,000 X 1.5X 2.0X 2.5X 3.0X -$2,480 $2,540 $2,040 $1,540 $1,040 $540 Y > > Ã Ã à Y Y 2Y 2Y 2Y Determine the values of X and Y so that all three cash flows are equivalent at an interest rate of 16% per year compounded yearly. X: $ Y: $
Consider the following three cash flow series: End of Year Cash Flow Series A Cash Flow Series B Cash Flow Series C 0 1 2 3 4 5 -$1,000 X 1.5X 2.0X 2.5X 3.0X -$2,480 $2,540 $2,040 $1,540 $1,040 $540 Y > > Ã Ã à Y Y 2Y 2Y 2Y Determine the values of X and Y so that all three cash flows are equivalent at an interest rate of 16% per year compounded yearly. X: $ Y: $
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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Transcribed Image Text:Consider the following three cash flow series:
End of Year Cash Flow Series A Cash Flow Series B Cash Flow Series C
0
1
2
3
4
5
-$1,000
X
1.5X
2.0X
2.5X
3.0X
-$2,480
$2,540
$2,040
$1,540
$1,040
$540
Y
Y
Y
2Y
2Y
2Y
Determine the values of X and Y so that all three cash flows are equivalent at an interest rate of 16% per year compounded yearly.
X: $
Y: $
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