How much is asset worth at the beginning of each period

Reference no: EM131935665

Question: An asset can potentially last for five periods. Each period it has a 15% chance of disappearing. If the asset has not disappeared at the end of any period its owner is paid 15. After five periods, if the asset survives, its owner is paid 50. Given this, how much is this asset worth at the beginning of each period?

Reference no: EM131935665

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