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Price of a Financial Asset

When the price of a financial asset of price $10,000 and the interest rate is 10 percent, investment is NOT justified for: (w) a perpetuity paying $1,000 annually. (x) an asset paying respectively as $5,000, $4,000, and $3,000 at the ends of the subsequent three years. (y) a bond worth $12,100 two years hence. (z) an asset worth $13,000 three years thus.

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