Question: For the cash flow and rate given below, what value of M will make the inflows and outflows equivalent? Compounding/y NPERY 4 APR (nom/y) NOMINAL
For the cash flow and rate given below, what value of M will make the inflows and outflows equivalent?
| Compounding/y | NPERY | 4 |
| APR (nom/y) | NOMINAL | 12.00% |
| Year | Cash Inflow | Cash Outflow |
| 0 | $28,500 | ($13,500) |
| 1 | $5,100 | ($37,500) |
| 2 | +5*M | -47*M |
| 3 | +12*M | ($17,500) |
| 4 | $28,500 | $0 |
| 5 | $3,500 | ($20,000) |
| 6 | +20*M | ($16,000) |
| 7 | $0 | ($63,000) |
| 8 | $31,000 | -16*M |
Group of answer choices
$13,875
-$1,933
-$786
-$1,102
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
Study Help