You own a security that will generate cash-flows of $200 every month for the next 24 months,

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You own a security that will generate cash-flows of $200 every month for the next 24 months, except for the first month in which the cash-flow is $0. The interest rate is 10%. What is the present value of the security?

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Corporate Finance

ISBN: 9781265533199

13th International Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Posted Date: Jan 29, 2024 03:00 AM

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You own a security that will generate cash-flows of $200 every month for the next 24 months,

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Heres how to calculate the present value PV of the security Discount Factor First determine the disc... View the full answer

Corporate Finance

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