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Let r be the nominal interest rate, compounded yearly. For what values of r is the cash flow stream 20,10 preferable to...

Let r be the nominal interest rate, compounded yearly. For what values of r is the cash flow stream 20,10 preferable to the cash flow stream 0, 34? ( Do not use Financial calculator or excel, show step)

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Particulars Case 1 Case 2
Present Value 20 10
Future value 34 34
Formula to compute interest Future value =Present value (1+r)^t Future value =Present value (1+r)^t
r equals to (Future value/Present value)^1/t-1 (Future value/Present value)^1/t-1
required rate of return if t = 1 year 70% 240%
required rate of return if t = 2 year 30.38% 84%

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