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The president of a company wants to make two equal lump-sum deposits, one 2 years and the second 4 years from now, so he can

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Answer #1

Lump-sum deposit at 2nd year and 4th year (outflow)

From the 4th year (second deposit) he can make 5 annual withdrawals of $100 (per year inflow)

So withdrawals starts from 4th year and ends at 8th year

At the end of 8th year there will be additional withdrawal of $500 (inflow)

The cash flow diagram is

Additional war-drawal 500 Walldrarials >100 73 4 5 Deposit Deposit Scanned-with CamScanner

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