Question

o Draw a cash flow diagram for the following equation: P=11206718, 1, 2) Hisco/ F10, 3,1)+ 1200](215,3,4) Draw a cash flow di

0 0
Add a comment Improve this question Transcribed image text
Answer #1

1 & 2. Both the given equations denote the same cash flow as shown below

1ооооо 12,000 o 1 2 3 4

In Q1, the equation shows: the cash flow of year 2 and 3 are first denoted in their respective future worth and then the entire future worth of the cash flow is discounted to present worth.

In Q2, each individual cash flow is directly discounted to present worth.

Add a comment
Know the answer?
Add Answer to:
o Draw a cash flow diagram for the following equation: P=11206718, 1, 2) Hisco/ F10, 3,1)+...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT