Can someone show me how to draw these cash flow profiles please?!
Symbol a6| represents the present value of six payments each of 1 at times 1, 2, 3, 4, 5, 6.
12 a6| is the PV of six payments each of 12 at times 1, 2, 3, 4, 5, 6.
Symbol (Iä)3| represents PV of three payments of 1, 2, 3 at times 0, 1, 2 respectively.
-2(Iä)3| is the PV of three payments of -2, -4, -6 at times 0, 1, 2 respectively.
v6 is the PV of a payment of 1 at time 6
-2v6a2| is the PV of a payment of -2a2| at time 6, but a payment of -2a2| at time 6 is the PV(at time 6) of two payments each of -2 at times 7, 8.
-2v6a2| is the PV(at time 0) of two payments each of -2 at times 7, 8.
The following time line shows these three payment streams
12 12 12 12 12 12 12 a6|
-2 -4 -6 -2(Iä)3|
-2 -2 -2v6a2|
|_________|_________|_________|_________|_________|_________|__________|__________|_________|____________
0 1 2 3 4 5 6 7 8 9
Summing up we have
-2 8 6 12 12 12 12 -2 -2
|__________|_________|__________|__________|__________|__________|__________|__________|__________|______
0 1 2 3 4 5 6 7 8 9
Can someone show me how to draw these cash flow profiles please?! Question 4 Draw the cashflow profile (aka the tota...
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