The following cash flow diagram represents an investment of Php 400 and revenue of x at the end of years one and two. Given a discount rate of 15% compounded annually, what must “x” approximately be for this set of cash flows to have a net present worth of zero?

The following cash flow diagram represents an investment of Php 400 and revenue of x at the end of years one and two. Given a discount rate of 15% compounded annually, what must “x” approximately be for this set of cash flows to have a net present worth of zero?

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter21: Dynamic Capital Structures And Corporate Valuation

Section: Chapter Questions

Problem 9P

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