3 -2,000 -4,000|-6,000 | 10,000 Year 1 2 4 5 Cash Flow, S P -0 OP= 10,000(P/F, i%, 5) - 2,000(P/G, i%, 5) OP= 10,000- 1,000(P/G, i%, 5) (F/P, i%, 5) OP= 10,000(P/F, i%, 5) -2,000(P/G, i%, 5) OP= -10,000(P/F, 1%, 5) + 2,000(P/G, i%, 4)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Choose the equation below that can be used to determine the value of "P" for a known interest rate, i. 

Year
1
2
3
4
5
Cash Flow, $
P
-0
-2,000 -4,000-6,000 10,000
OP = 10,000(P/F, i%, 5) - 2,000(P/G, i%, 5)
OP = 10,000- 1,000(P/G, i%, 5) (F/P, 1%, 5)
OP = 10,000(P/F, i%, 5) -2,000(P/G, i%, 5)
OP = -10,000(P/F, i%, 5) + 2,000(P/G, i%, 4)
Transcribed Image Text:Year 1 2 3 4 5 Cash Flow, $ P -0 -2,000 -4,000-6,000 10,000 OP = 10,000(P/F, i%, 5) - 2,000(P/G, i%, 5) OP = 10,000- 1,000(P/G, i%, 5) (F/P, 1%, 5) OP = 10,000(P/F, i%, 5) -2,000(P/G, i%, 5) OP = -10,000(P/F, i%, 5) + 2,000(P/G, i%, 4)
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