2. Compute the equivalent future and present worth for the cash flow in the followingdiagram with i=12%$1003.43. Given the following cash flow series, which of the following equation(s) can be used tofind out the equivalent worth V at n=3? Explain your selection.V= ?$100$1002.4a) V=100(P/A, i, 6)-100(P/F,i,4) c) V= [100+P(P/A,i,6)]*(F/P,i,3)-100b) V= 100(F/A,i,3)+P(P/A,i,3)d) V=100(F/A,i,6)*(P/F,i,3)-100

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2. Compute the equivalent future and present worth for the cash flow in the following diagram with i=12% $100 3

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter19: Lease Financing

Section: Chapter Questions

Problem 2MC

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

2. Compute the equivalent future and present worth for the cash flow in the following
diagram with i=12%
$100
3.
4
3. Given the following cash flow series, which of the following equation(s) can be used to
find out the equivalent worth V at n=3? Explain your selection.
V= ?
$100
$100
2.
4
a) V=100(P/A, i, 6)-100(P/F,i,4) c) V= [100+P(P/A,i,6)]*(F/P,i,3)-100
b) V= 100(F/A,i,3)+P(P/A,i,3)
d) V=100(F/A,i,6)*(P/F,i,3)-100

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