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: $

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
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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