The fourth period the asset disappears

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Reference no: EM13281530

You own an asset. Each period it has a 15 percent chance of disappearing with no return to you. In the first period, if the asset survives, you will be paid 4. In the second period, if the asset survives, you will be paid 6. In the third period, if the asset survives, you will be paid 9. In the fourth period, if the asset survives, you will be 10. the fourth period the asset disappears. The interest rate between periods is 0 percent. How much is your asset worth today ?

Reference no: EM13281530

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