Cash flow stream as payment
Problem: You sold a car and accepted a note with the following cash flow stream as your payment. What was the effective price you received for the car assuming an interest rate of 18.5%? 0 1 2 3 4CFs: $0 $1,000 $2,000 $2,000 $2,000
Now Priced at $20 (50% Discount)
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You sold a car and accepted a note with the following cash flow stream as your payment.
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