Question: ANSWER 4-44 415 The cash flows have a present value of 0 . Compute the value of J assuming a 6% interest rate. PV=0=1000(P/A,6%,3)J(P/A,6%,3)(P/F,6%,5)J=(.7473)1000/(P/F,6%,5)=$1338,15 4-44

ANSWER 4-44 415 The cash flows have a present value of

ANSWER 4-44

415 The cash flows have a present value of 0 . Compute the value of J assuming a 6% interest rate. PV=0=1000(P/A,6%,3)J(P/A,6%,3)(P/F,6%,5)J=(.7473)1000/(P/F,6%,5)=$1338,15 4-44 Write the cash flow equivalence equation as a moment equation Problem 4-15. (a) About Year 4 (b) About Year 5

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