Consider the cash flow: Year Cash Flow o -$100 1 +50 2 +60 3 +70 4 +80

Question:

Consider the cash flow:

Year            Cash Flow

o                    -$100

1                      +50

2                      +60

3                      +70

4                      +80

5                      +140

Which one of the following is correct for this cash flow?

(a) 100 = 50 + 10(A/G, i, 5) + 50(P/F.i,5)

(b) 50(P/A, i, 5) + 10(P/G, i, 5) + 50(P/F, i, 5)/100 = 1

(c) 100(Aj P, i, 5) = 50 + 10 (Aj G, i, 5)

(d) None of the equations are correct.

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