assume that $1 one year from now is worth $0.90 today, and $1 two years from now is worth $0.75 today. Dollars can be bought and sold at these prices. There are no transaction costs.A firm anticipates that it will have a surplus of dollars one year from now but a shortage two years from now. The present value of the surplus of dollars that is forecast for one year from now is $2,000. What is the amount of the surplus in terms of dollars available in one year?

assume that $1 one year from now is worth $0.90 today, and $1 two years from now is worth $0.75 today. Dollars can be bought and sold at these prices. There are no transaction costs.A firm anticipates that it will have a surplus of dollars one year from now but a shortage two years from now. The present value of the surplus of dollars that is forecast for one year from now is $2,000. What is the amount of the surplus in terms of dollars available in one year?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter13: Other Financing Alternatives

Section: Chapter Questions

Problem 1bM

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