Question: Remember to explain all your steps and to show all formulas you use before you put numbers into the equations. o First, write the formula

Remember to explain all your steps and to show all formulas

  • Remember to explain all your steps and to show all formulas you use before you put

    numbers into the equations. o First, write the formula o Second, substitute the numbers into the formulao Third, say what is left to compute o Fourth, compute

Question 2 The cash inflow from this investment will be $114 one year from today (year 1) and $144 two years from today (year 2). The market rate of interest is 20%. (2.1) Find the present value (PV) for this investment. (2.2) If the initial outlay is $195, is the investment acceptable

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