Tutorial 7 Homework Solution
Net cash flows in Year 0: -$1,200,000 - $40,000 - $50,000 + $60,000 - ($90,400 - $60,000)(0.40) = -1,217,840 1: ($240,000)(0.60) + ($1,240,000)(0.3333)(0.40) = 309,317 2: ($240,000)(0.60) + ($1,240,000)(0.4445)(0.40) = 364,472
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