Consider the following three cash flow series: End of Year Cash Flow Series A Cash Flow Series B Cash Flow Series C -$1,000 -$2,660 Y $3,180 Y 1.5X $2,680 Y 3 2.0X $2,180 2Y 4 2.5X $1,680 2Y 5 3.0X $1,180 2Y Determine the values of X and Y so that all three cash flows are equivalent at an interest rate of 15% per year compounded yearly. X: $ Y: $

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.12: Uneven, Or Irregular, Cash Flows
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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
-$1000
-$2,660
Y
X
$3,180
Y
1.5X
$2,680
Y
3
2.0X
$2,180
2Y
4
2.5X
$1,680
2Y
5
3.0X
$1,180
2Y
Determine the values of X and Y so that all three cash flows are equivalent at an interest rate of 15% per year compounded yearly.
X: $
Y: $
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 -$1000 -$2,660 Y X $3,180 Y 1.5X $2,680 Y 3 2.0X $2,180 2Y 4 2.5X $1,680 2Y 5 3.0X $1,180 2Y Determine the values of X and Y so that all three cash flows are equivalent at an interest rate of 15% per year compounded yearly. X: $ Y: $
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