Consider the following three cash flow series: End of Year Cash Flow Series A Cash Flow Series 0 1 2 3 4 5 -$1,000 X 1.5X 2.0X 2.5X 3.0X -$2,330 $2,870 $2,470 $2,070 $1,670 $1,270 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.
Consider the following three cash flow series: End of Year Cash Flow Series A Cash Flow Series 0 1 2 3 4 5 -$1,000 X 1.5X 2.0X 2.5X 3.0X -$2,330 $2,870 $2,470 $2,070 $1,670 $1,270 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.
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
Problem 1PS
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Transcribed Image Text:Cash Flow Series B Cash Flow Series C
-$2,330
$2,870
$2,470
$2,070
$1,670
$1,270
Y
Y
Y
-
2Y
2Y
2Y
Transcribed Image Text:Consider the following three cash flow series:
End of Year Cash Flow Series A Cash Flow Series
0
1
2
3
4
LO
-$1,000
X
1.5X
2.0X
2.5X
3.0X
-$2,330
$2,870
$2,470
$2,070
$1,670
$1,270
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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