Consider the following three cash flow series: End of Year Cash Flow Series A Cash Flow Series B Cash Flow Series C -$1,000 -$2,500 Y $2,770 Y 1.5X $2,470 Y 3 2.0X $2,170 2Y 4 2.5X $1,870 2Y 3.0X $1,570 2Y Determine the values of X and Y so that all three cash flows are equivalent at an interest rate of 13% per year compounded yearly. X: $ Y: $

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Chapter8: Current And Contingent Liabilities
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Problem 80BPSB: Ratio Analysis Consider the following information taken from Chicago Water Slides (CWSs) financial...
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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
-$2,500
Y
1
$2,770
1.5X
$2,470
Y
3
2.0X
$2,170
2Y
4
2.5X
$1,870
2Y
5
3.0X
$1,570
2Y
Determine the values of X and Y so that all three cash flows are equivalent at an interest rate of
13% 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 -$2,500 Y 1 $2,770 1.5X $2,470 Y 3 2.0X $2,170 2Y 4 2.5X $1,870 2Y 5 3.0X $1,570 2Y Determine the values of X and Y so that all three cash flows are equivalent at an interest rate of 13% 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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