For the production facility that KMU company will establish on Ankara road, 250 thousand liras in...

 

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For the production facility that KMU company will establish on Ankara road, 250 thousand liras in the first year, 200 thousand liras in the second year, plans to spend 180 thousand liras each year for the next 2 years and 600 thousand liras in the last year. The compound interest rate is 20%. Solve the solution using the table method. By drawing the cash flow diagram: a-What is the value of the total expenditure that the company will make today and at the end of the 5th year? b-If the company spent the same amount each year, what would be the annual expenditure amount? For the production facility that KMU company will establish on Ankara road, 250 thousand liras in the first year, 200 thousand liras in the second year, plans to spend 180 thousand liras each year for the next 2 years and 600 thousand liras in the last year. The compound interest rate is 20%. Solve the solution using the table method. By drawing the cash flow diagram: a-What is the value of the total expenditure that the company will make today and at the end of the 5th year? b-If the company spent the same amount each year, what would be the annual expenditure amount?

Answer rating: 100% (QA)

To solve the problem using the table method we can create a cash flow table that represents the expe... View the full answer