Determine the values of X and Y so that all three cash flows are equivalent at an interest rate of 12% per year compounded yearly. X: $ Y: $
Determine the values of X and Y so that all three cash flows are equivalent at an interest rate of 12% per year compounded yearly. X: $ Y: $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Consider the following three cash flow series:
End of Year Cash Flow Series A Cash Flow Series B
Cash Flow Series C
-$1,000
-$2,360
Y
1
$3,190
Y
2
1.5X
$2,790
Y
2.0X
$2,390
2Y
4
2.5X
$1,990
2Y
3.0X
$1,590
2Y
Determine the values of X and Y so that all three cash flows are equivalent at an interest rate of 12% per year compounded yearly.
X: $
Y: $
Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +5.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F03a90c88-7a23-40fc-8f5a-dc48e9214834%2F2bf72fdb-8bbd-4ebe-bcd7-eac295004a9f%2Frgr4qqv_processed.png&w=3840&q=75)
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
-$1,000
-$2,360
Y
1
$3,190
Y
2
1.5X
$2,790
Y
2.0X
$2,390
2Y
4
2.5X
$1,990
2Y
3.0X
$1,590
2Y
Determine the values of X and Y so that all three cash flows are equivalent at an interest rate of 12% per year compounded yearly.
X: $
Y: $
Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +5.
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