Your Financial Advisor is selling you a product from which you expect to earn R3000 one...
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Your Financial Advisor is selling you a product from which you expect to earn R3000 one year from now, R5000 2 years from now and R7000 3 years from now. i. ii. If the relevant discounted rate is 7%, how much is this cash flow stream worth to you today? (7 Marks) Would you buy this product for 10000? Justify your answer. (3 Marks) Your Financial Advisor is selling you a product from which you expect to earn R3000 one year from now, R5000 2 years from now and R7000 3 years from now. i. ii. If the relevant discounted rate is 7%, how much is this cash flow stream worth to you today? (7 Marks) Would you buy this product for 10000? Justify your answer. (3 Marks)
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Answer to Part i Calculation of cash flow stream worth today 123456789 10 1 23456789 10 A A B C ... View the full answer
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