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What is the present worth (that is, the equivalent value of the cash flows at year 0) of the cash flows in the table below? Use an interest rate of 6% compounded annually. Year 1 2 3 4 5 6-20 Cash flow 6,000 5,000 4,000 3,000 2,000 10,000 $85,496 $89,263 $89,916 $91,611
What is the present worth (that is, the equivalent value of the cash flows at year 0) of the cash flows in the table below? Use an interest rate of 6% compounded annually. Year 1 2 3 4 5 6-20 Cash flow 6,000 5,000 4,000 3,000 2,000 10,000 $85,496 $89,263 $89,916 $91,611
Chika IlonahLv10
28 Sep 2019
Related textbook solutions
Related questions
Two mutually exclusive projects have the estimated cash flows shown below. Use a future worth analysis to determine which should be selected at an interest rate of 10% per year.
|
Q |
R |
|
|
First cost, $ |
42,000 |
80,000 |
|
Annual Cost, $ |
6,000 |
$7,000 year 1, increasing by a $1,000 per year |
|
Salvage value, $ |
0 |
4,000 |
|
Life, years |
4 |
8 |
