One asset firm with no liabilities

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Consider PV LTD a one asset firm with no liabilities. Assume that the asset will generate end of year cash flow of $ 100 each year for two years and then will have zero value. Assume also that the risk free interest rate in the economy is 10%. Then, at time 0 (the beginning of the first year of the asset's life), the present value of the firm's future cash flow, denoted by PAo, is :

Reference no: EM131567859

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