Consider the following investment cash flows with the interest rate of 9% compounded annually. End of Year Net Cash Flow End of Year Net Cash Flow 0 $0 4 $200 1 $500 5 − $100 2 − $100 6 − $100 3 $800 7 $700 Find the present worth of the cash flows using the actual cash flows. Find the future worth of this cash flow series using the actual cash flows. Find the future worth using the present worth.
Consider the following investment cash flows with the interest rate of 9% compounded annually. End of Year Net Cash Flow End of Year Net Cash Flow 0 $0 4 $200 1 $500 5 − $100 2 − $100 6 − $100 3 $800 7 $700 Find the present worth of the cash flows using the actual cash flows. Find the future worth of this cash flow series using the actual cash flows. Find the future worth using the present worth.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
Section: Chapter Questions
Problem 2MAD: Assume San Lucas Corporation in MAD 26-1 assigns the following probabilities to the estimated annual...
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Consider the following investment cash flows with the interest rate of 9% compounded annually.
End of Year |
Net Cash Flow |
End of Year |
Net Cash Flow |
0 |
$0 |
4 |
$200 |
1 |
$500 |
5 |
− $100 |
2 |
− $100 |
6 |
− $100 |
3 |
$800 |
7 |
$700 |
- Find the present worth of the cash flows using the actual cash flows.
- Find the future worth of this cash flow series using the actual cash flows.
- Find the future worth using the present worth.
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