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A civil engineer wants to deposit an amount P now such that she can withdraw an equal annual amount of A1 = P2000 per year for the first 5 years, starting 1 year after the deposit, and a different annual withdrawal of A2 = P3000 per year for the following 3 years. How would the cash flow diagram appear if i = 6.5% per year?

A civil engineer wants to deposit an amount P now such that she can withdraw an equal annual amount of A1 = P2000 per year for the first 5 years, starting 1 year after the deposit, and a different annual withdrawal of A2 = P3000 per year for the following 3 years. How would the cash flow diagram appear if i = 6.5% per year?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A civil engineer wants to deposit an amount P now such that she can withdraw an equal annual amount of A1 = P2000 per year for the first 5 years, starting 1 year after the deposit, and a different annual withdrawal of A2 = P3000 per year for the following 3 years. How would the cash flow diagram appear if i = 6.5% per year?
Transcribed Image Text:A civil engineer wants to deposit an amount P now such that she can withdraw an equal annual amount of A1 = P2000 per year for the first 5 years, starting 1 year after the deposit, and a different annual withdrawal of A2 = P3000 per year for the following 3 years. How would the cash flow diagram appear if i = 6.5% per year?
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