I need the cash flow brawn it Two receipts of $1,000 each are .1 desired at the end of years 3 and 4. Given that interest rates are 8%, 8.5 %, 9% and 10% for years 1,2,3 and 4 respectively, determine the equal payment amount made at the end of years 1, 2 and 3 that is equivalent to those two receipts. Sketch the appropriate cash flow and outline your calculations clearly. Adding an excel sheet that supports your calculations is advantageous

I need the cash flow brawn it Two receipts of $1,000 each are .1 desired at the end of years 3 and 4. Given that interest rates are 8%, 8.5 %, 9% and 10% for years 1,2,3 and 4 respectively, determine the equal payment amount made at the end of years 1, 2 and 3 that is equivalent to those two receipts. Sketch the appropriate cash flow and outline your calculations clearly. Adding an excel sheet that supports your calculations is advantageous

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

Problem 1PS

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Question

I need the cash flow brawn it Two receipts of $1,000 each are .1 desired at the
end of years 3 and 4. Given that interest rates are 8%, 8.5 %, 9% and 10% for
years 1, 2, 3 and 4 respectively, determine the equal payment amount made at
the end of years 1, 2 and 3 that is equivalent to those two receipts. Sketch the
appropriate cash flow and outline your calculations clearly. Adding an excel
sheet that supports your calculations is advantageous

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Step 1: Meaning of Cash Flows

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Step 2: Present Value of Inflows:

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Step 3: Present Value of Outflows:

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Step 4: Equating Present Values:

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General Instruction: Use Yellow paper for your computation and answer. Task 1. Compute the interest of the following: 1. P25,000 at 6% simple interest for 1 year. 2. P30,000 at 9.5% simple interest for 90 days. 3. P60,000 at 12.5% simple interest for 2 years and 6 months.
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