1. An asset X's value follows a natural exponential function, X = et and an asset Y's value follows Y = e2t-1 where t is the number of years. When the ratio of Y's value to X's value is equal to 7.39, what is the number of years passed?
2. Suppose that an asset's cash flow decreases at a constant rate of 4% per year. Use the geometric progression.
If the asset's initial cash flow is $1,000 (a1 = 1000), what will the asset's cash flow be in 23 years? (a23 = ?)
What is the total sum of the asset's cash flows for 50 years (starting from $1,000 initial cash flow)? (S50 = ?)