Question: 9. Estimate the present worth in year 0 for the cash flows (CF) shown in the table below. The interest rate is i% per year.

 9. Estimate the present worth in year 0 for the cash

9. Estimate the present worth in year 0 for the cash flows (CF) shown in the table below. The interest rate is i% per year. 0 -200 3 1 600 600 5 -200 6 -200 Year 2 4 7 8 9 CFS 600 600 -200 -200 800 10. You want to close your budget for the cash floods (CF) shown in the table below. What is the value of X that will make the present worth in year 0 equal to S 4000 at an interest rate ofi% per year? Year CF $ 0 200 300 2 400 3 500 4 600 5 700 6 800 7 11. You want to start a business with an annual interest rate of} %. On year 5 you will start to get revenue of $5000 per year that will decrease by a rate Gof S1000 from year 8 through 12. Determine the present worth (P) of this business at year 0. 12. You want to start a business with an annual interest rate of/ %. On year 4 you will start to get revenue of $6000 per year that will decrease by a rate g of 3% from year 8 through 12. Determine the present worth (P) of this business at year 0. Act

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!