Draw the appropriate cash flow diagram

Reference no: EM133483320

Case: You make a payment at the end of year 1 for $300. You receive $500 at the end of year 3, $1,000 at the end of year 4, and $1,500 at the end of year 5. No other payments or receipts occur. Assume i is 10% annual rate compounded annually.

Part (a) Draw the appropriate cash flow diagram.

Part (b) Using factor notation, what would be the Present Value of this cash flow? DO NOT SOLVE, but do fill in appropriate i and N values in the notation. Use either a (P/G,i,N) or (A/G,i,N) term (whichever is appropriate) as part of your solution (with i and N filled in).

Part (c) Solve for the Present Value of the cash flows. If you are unable or uncomfortable using the notation you provided in part (b), state such and solve using other factors.

Reference no: EM133483320

Questions Cloud

What is political socialization : What is political socialization? Describe it. Do you think that political socialization is real? Why or why not? This is in the textbook.

Identify the rationale for selected nursing intervention : Briefly discuss two (2) nursing interventions to address each nursing problem identified in question 4 (a) (these may be independent or collaborative).

Separate the vaccines : If the family chooses to separate the vaccines instead of having them all given on the same day, when should the nurse tell the family to return?

How might you change up the spending : How might you change up the spending. You must include one reliable fact from the Internet to support your decision. Do not forget to cite the source.

Draw the appropriate cash flow diagram : Draw the appropriate cash flow diagram and Solve for the Present Value of the cash flows - annual rate compounded annually

Diagnosis of hyperthyroidism : Both the diagnostic testing and treatments available for a diagnosis of hyperthyroidism (Grave's Disease) can be very expensive.

How would leadership for implementation of new system : Include a description of the leadership behaviors that would be most effective to position your staff for success based on their experience and needs.

What area of the world is most affected : what happens to the person and what area of the world is most affected?, what treatments are available?,

Develop one alarm management and patient safety strategies : Develop one alarm management and patient safety strategies for each of the following levels of care: Organizational, Unit and Individual caregiver.

User Account

All Pages