Consider the following three cash flow series: End of Year Cash Flow Series A Cash Flow Series B Cash Flow Series C 0 1 2 3 4 5 -$1,000 X 1.5X 2.0X 2.5X 3.0x -$2,420 $3,000 $2,700 $2,400 $2,100 $1,800 Y 2Y 2Y 2Y Determine the values of X and Y so that all three cash flows are equivalent at an interest rate of 14% per year compounded yearly X: $
Consider the following three cash flow series: End of Year Cash Flow Series A Cash Flow Series B Cash Flow Series C 0 1 2 3 4 5 -$1,000 X 1.5X 2.0X 2.5X 3.0x -$2,420 $3,000 $2,700 $2,400 $2,100 $1,800 Y 2Y 2Y 2Y Determine the values of X and Y so that all three cash flows are equivalent at an interest rate of 14% per year compounded yearly X: $
Cornerstones of Financial Accounting
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ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
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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Topic Video
Question
244.
Subject
Economics
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
0
1
2
3
4
5
-$1,000
X
1.5X
2.0X
2.5X
3.0X
-$2,420
$3,000
$2,700
$2,400
$2,100
$1,800
Y
2Y
2Y
2Y
Determine the values of X and Y so that I three cash flows are equivalent at an interest rate of 14% per year compounded yearly,
X: $
Y:S
Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 15.
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