Question

Draw the cash flow diagram for the following plan a plan including six years as a useful life, you invest $1000 now and $3000 four years from now followed by five quarterly deposits decreasing by $500 per quarter. In
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Answer #1

time period = 6 years or 6 x 4 = 24 quarters

Quarters Cash flow ($)
0 -1000
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16 -3000
17 -2500
18 -2000
19 -1500
20 -1000
21 -500
22
23
24

Cash flow (S) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 22 23 24 -500 1000 -1500 Cash flow ($) -2000 -2500 -3000 -3500 Quarters

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