Interest rate that equates these two cash flow series

Assignment Help Macroeconomics

Reference no: EM131502953

The interest rate that makes Alternatives A and B equivalent is in what range?

Year / Alt A. / Alt. B

0 / -$1,000 / -$3,000

1 / 100 / 500

2 / 100 / 550

3 / 100 / 600

4 / 200 / 650

5 / 200 / 650

a) Less than 2%

b) Between 2% and 5%

c) Greater than 5%

d) There is no interest rate that equates these two cash flow series.

Reference no: EM131502953

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