Different payment streams and appropriate required returns

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Reference no: EM131013201

You have two assets and must calculate their values today based on their different payment streams and appropriate required returns. Asset 1 has a required return of 14% and will produce a stream of $600 at the end of each year indefinitely. Asset 2 has required return 12% and will produce an end-of-year cash flow of 1300 in the first year $1600 in the second year, and $600 in its third and final year.

Reference no: EM131013201

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