Visa Inc. asked your company for a 5-year loan of $50,000. The repayment of the...
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- Visa Inc. asked your company for a 5-year loan of $50,000. The repayment of the loan will be as follows: Visa Inc. will pay $5,000 at the end of Year 1, $10,000 at the end of Year 2, and $15,000 at the end of Year 3, and fixed unspecified cash flow (assume X) at the end of each of the following years (Year 4 and Year 5). Assuming 8% as an appropriate rate of return on low risk but an illiquid 5-year loan. Find out the cash flow that this investment must provide at the end of each of the final 2 years (year 4 and year 5), that is, find out the X? (6 marks)
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