Business, 24.09.2019 01:20 snikergrace

You are in negotiations to make a 7-year loan of $35,000 to deville corporation. to repay you, deville will pay $2,500 at the end of year 1, $5,000 at the end of year 2, and $7,500 at the end of year 3, plus a fixed but currently unspecified cash flow, x, at the end of each year from year 4 through year 7. you are confident the payments will be made, since deville is essentially riskless. you regard 8% as an appropriate rate of return on a low risk but illiquid 7-year loan. what cash flow must the investment provide at the end of each of the final 4 years, that is, what is x?

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You are in negotiations to make a 7-year loan of $35,000 to deville corporation. to repay you, devil...

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