How much money would you have if you banked your cash flow

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Reference no: EM131814681

What would you pay for an asset that had cash flows of 2000 at the end of year 1, 2500 at the end of year 2 and 3000 at the end of year 3 if the appropriate discount rate is 5% each year? How much money would you have if you banked your cash flow and sold the remains of the asset at the end of the 2nd year? What rate of return did you earn over 2 years?

Reference no: EM131814681

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