Question: Question 1 ($1/$0) = 0.92 ($2/$0) = 0.87 Part 1 What is the implied interest rate between time 1 and 2 ? Part 2 Now

Question 1

($1/$0) = 0.92 ($2/$0) = 0.87

Part 1

What is the implied interest rate between time1and2?

Part 2

Now there is a project with three certain cashflows: a current cash input of $10MM into the project, a cash of $5MM att=1and $7MM at t=2

generated from the project. Suppose a buyer wishes to purchase this project but pay for it one year from now. How much should you ask for?

This is copied from Accepti, everything is pasted here.

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