4-72. Find the value of the unknown quantity, Po, that establishes equivalence in the cash-flow diagram below. Suppose i = 20% per year. Use an annuity factor and a uniform gradient factor in your solution. (4.10) $2,000 $1,400 $1,100 $800 $500 $500 $500 $500 $500 7 8 9. 10 5 6. End of Year 1 2 3 4 PO= ?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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4-72. Find the value of the unknown quantity, Po, that
establishes equivalence in the cash-flow diagram below.
Suppose i = 20% per year. Use an annuity factor and a
uniform gradient factor in your solution. (4.10)
$2,000
$1,400
$1,100
$800
$500 $500 $500 $500 $500
1
2
3 4
5 6
7 8
9.
10
End of Year
PO= ?
Transcribed Image Text:4-72. Find the value of the unknown quantity, Po, that establishes equivalence in the cash-flow diagram below. Suppose i = 20% per year. Use an annuity factor and a uniform gradient factor in your solution. (4.10) $2,000 $1,400 $1,100 $800 $500 $500 $500 $500 $500 1 2 3 4 5 6 7 8 9. 10 End of Year PO= ?
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