Question: Consider a cash flow profile with variable interest rates shown below, the equivalent worth of these cash flows at year 4 is: Year Cash flow

Consider a cash flow profile with variable interest rates shown below,

Consider a cash flow profile with variable interest rates shown below, the equivalent worth of these cash flows at year 4 is: Year Cash flow Interest rated year 0 0 N/A 1 $100 4% 2 0 3 -$500 5% $1,000 5% 5 -$200 2% 4% a. V2 = $100(1.04)2 (1.05)2 - $500(1.05) + $1,000 - $200(1.02)-1 b. V. = $100(1.04)+ (1.05)2 - $500(1.05) + $1,000 - $200(1.02)-1 c. V2 = $100(1.04)(1.05)2 - $500(1.05) - $200(1.02)1 d. V4 = $100(1.04)+ (1.05)2 - $500(1.05) + $1,000 - $200(1.02)

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