3-14 Solve the diagram for the unknown Q assuming an 8% interest rate. 2000 0- 0...

Question

Question

Answer 1

Answer #1

We need to find Q which is the present worth of the cash flow.

There is no cash flow in 1, 2 or 3 years and so the only cash inflow occurs in 4th year, accounting to $2000

Q = PW = 2000(P/F, 8%, 4)

= 2000*0.7350 = $1470

so Q = $1470.

Answer 2

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