|
|
Asset A
|
Asset B
|
Asset C
|
Asset D
|
Asset E
|
Asset F
|
|
Contractual (promised) cash flow
|
$60,000
|
$60,000
|
$60,000
|
$60,000
|
$60,000
|
$60,000
|
|
Expected cash flow
|
$60,000
|
$50,000
|
$60,000
|
$46,000
|
$60,000
|
$55,445*
|
|
Adjustments to reflect risk premium
|
|
$200
|
|
$1,500
|
|
$1,400
|
|
Adjusted cash flows
|
$60,000
|
$49,800
|
$60,000
|
$44,500
|
$60,000
|
$54,045*
|
|
Present value at 6% (risk-free rate)
|
$60,000
|
$49,800
|
$42,300†
|
$31,372††
|
$49,170
|
$44,314*
|
* See exhibit 4
† $60,000
5
.705
†† $44,500
5
.705
$10,000
5
4.917
|
|