Question: Firms A , B , C and D enter into a financial arrangement. Money flush firm A will pay expanding firms B and C each
Firms A , B , C and D enter into a financial arrangement. Money flush firm A will pay expanding firms B and C each $1,000,000 today. B will pay D $2,200,000 three years from today. C will pay B $800,000 two years from today and D $350,000 two years from today. Finally D will pay A $3,200,000 six years from today. Use i A , i B , i C and i D to denote, respectively, the annual yield rates that these four firms experience over the period of their involvement (6 years for A , 3 years for B , 2 years for C , and 4 years for D ).
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