Economically equivalent for an annual compound interest

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Reference no: EM131850101

What is the value of Y so that the two cash flows given below are economically equivalent for an annual compound interest of 5.9%? Note: Y could be positive or negative.

Cash flow I

Year 1: ($) 550

Year 2 : ($) -405

Year 3: ($) -170

Year 4: ($) 514

Year 5: ($) -411

Cash flow II

Year 1: ($) Y

Year 2: ($) Y

Year 3: ($)-56

Year 4: ($) 0

Year 5: ($)463

Reference no: EM131850101

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