Company decide which risks to hold and which to hedge

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1. Solving for Time-How many years (and months) will it take $2 million to grow to $6.60 million with an annual interest rate of 9 percent? (Do not round intermediate calculations. Round "months" to 1 decimal place.)

2. How should a company decide which risks to hold and which to hedge?

3. Moving Cash Flows-What is the value in year 2 of a $650 cash flow made in year 5 if interest rates are 10 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131825203

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