Draw the cashflow diagram and solve using the formula 4. Given the series of payments at the end of each year. i = 6%Year 190,00085,000Year 2Year 380,000a. In what year will there be no payment?b. What is the present worth of all payment?c. What is the equivalent annual payment?Ans. 19, P 597,699.71, P 53,566.36

Present worth of the payments is the present value when all the payments which are made during the…

Answered: a. In what year will there be no…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 15PROB

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a. In what year will there be no payment? b. What is the present worth of all payment? c. What is the equivalent annual payment?