PPT Slide

PV 3-year, $2 annuity, 16% = $4.492.

P3 = = $21.20.

PV(P3) = $13.58.

P0 = $4.49 + $13.58 = $18.07.

^

$4.24

0.10

^

^

What is the price, P0?

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