Determine the interest rate (i) that makes the pairs of cash flows below economically equivalent. Year...

Determine the interest rate (i) that makes the pairs of cash flows below economically equivalent.

Year	Pair 1	Pair 2
0	$0	0
1	$2000	$2500
2	$2000	$1875
3	$2000	$1406
4	$2000	$1055
5	$2000	$791
6	$2000	$595

Expert Solution

as we press the enter buttong the changed screen is as below

the value in cell d293 tuns zero and the disount factor turns 23.96%.so the answer is 23.96%. please ask if any query.

the goal function is in tab data and goal seek.

jeff jeffy answered 2 years ago

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