Question: Discounted Cash Flow Valuation contd. Try Example 2 & 3: A Financial Engineer at Tullow Oil Ghana Ltd. has developed an investment product that promised

 Discounted Cash Flow Valuation contd. Try Example 2 \& 3: A

Discounted Cash Flow Valuation contd. Try Example 2 \& 3: A Financial Engineer at Tullow Oil Ghana Ltd. has developed an investment product that promised its holders GHc 2000,GH3000,GHe4000, and GHe 5000 in one year, two years, three years and four years respectively. If you can earn 10% on similar investments, what is the most you should pay for this one? NB: You need to compute the present value of these cash flows at 10% one after the other and finally add them together. Remember to draw your time line

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