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What must the second payment be for the two streams to be

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Problem 1: Scheduled payments of $3200 due today and $2200 due in 15 months are to be replaced by two payments-$1600 due in 15 months and a second payment of undetermined size due in 24 months. What must the second payment be for the two streams to be economically equivalent? Assume that money can earn 4% compounded quarterly. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Reference no: EM132913005

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