Consider the following cash flow:

Year            Cash Flow

0                       -$P

1                      +1000

2                      +850

3                      +700

4                      +550

5                      +400

6                      +400

7                      +400

8                      +400

Alice was asked to compute the value of P for the cash flow at 8%interest. She wrote three equations: 

(a) P = 1000(P/A, 8%, 8) -150(P/G, 8%, 8) + 150(P / G, 8%, 4) (P / F, 8%,4)

(b) P = 400(P / A, 8%, 8) + 600 (p / A, 8%, 5)'- 150(P / G, 8%, 4)

(c) P = 150(P /G, 8%, 4) + 850(P / A, 8%,4) + 400(P / A, 8%, 4)(P / F, 8%,4) Which of the equations is correct?