1. Draw a cash flow diagram showing payments of S6000 now, $2500 two years from now and $4500 six years from now. Interest rate is 9% per year. For the given cash flows find the: a) Total present worth equivalent. b) Total future worth equivalent. and c) Equivalent annual worth (uniform series) from year 1 to 6.

1. Draw a cash flow diagram showing payments of S6000 now, $2500 two years from now and $4500 six years from now. Interest rate is 9% per year. For the given cash flows find the: a) Total present worth equivalent. b) Total future worth equivalent. and c) Equivalent annual worth (uniform series) from year 1 to 6.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 29P

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