Construct a cash flow diagram for the following cash flows: $25,000 outflow at time 0, $9000...

Question

Question

Answer 1

Answer #1

(4) Cash flow diagram as follows (values in $).

25, 000 9000 q000 9,๐๐๐ qooo 41000 3

(5)

Future value = $1,000,000 x F/P(10%, 2) = $1,000,000 x (1.10)² = $1,000,000 x 1.21 = $1,210,000

Answer 2

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