Question

sions Question 29 ments 2.5 pts zes Consider the cash flow presented below: Find P if i10 % . Most nearly numbers es for answer. be Connect End-of-year 0 1 3 4 5 gle Drive +Cash flow 10 20 30 40 P rchase Course aterials Cash 0 0 0 0 flow ffice 365 182 tudyMate Campus 262 274 244 194 No correct answer

Answer 1

Present value of cash outflows Present value of cash inflows S10 $20* PVIF(10% , 1) + $30 PVIF(10%, 2)$40* PVIF(10% , 3)$0 * PVIF(10%, 4) +P * PVIF(10%, 5) $10 $20 0.9091 $30 0.8264 $40 * 0.7513 SO * 0.683 P 0.6209 P _ P = P 0.6209 P $83.026 P - P 0.6209 P 0.3791 P $83.026 0.3791 $83.026 $83.026 $219.0082 _ $219 (Rounded) Ans : P $219