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You have two assets and must calculate their values today based on their different payment streams and appropriate required returns.

Asset 1 has a required return of 15% and will produce a stream of $500 at the end of each year indefinitely.

Asset 2 has a required return of 10% and will produce an end-of-year cash flow of $1,200 in the first year, $1,500 in the second year, and $850 in its third and final year.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91869422

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