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Using the information provided in the following table, find the value of each as

ID: 2659055 • Letter: U

Question

Using the information provided in the following table, find the value of each asset.

Cash flow

Asset                           End of year                Amount                                  Appropriate required return

A                                             1                      $ 5,000                                                18%

2                      5,000

3                      5,000

B                                             1 through         $ 300                                                   15%

C                                             1                      $ 0                                                       16%

2                      0

3                      0

4                      0

5                      35,000

D                                             1 through 5      $ 1,500                                                12%

6                      8,500

E                                              1                      $ 2,000                                                14%

2                      3,000

3                      5,000

4                      7,000

5                      4,000

6                      1,000


Explanation / Answer