In an investment case, 1 million investment is required at the end of the 4th and 5th year, a profit of 2 million at the end of the 9th year, and a profit of 3 million at the end of the 10th year, and the annual interest i = 5% of bank loans. [a] Draw a Cash Flow diagram. [b] Taking the end of the tenth year as the closing date, find P, F, and A respectively. [c] Is it worth investing in this case?

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Chapter1: Making Economics Decisions
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please answer all parts of the questions within 30 minutes. make sure all the parts of the question are answered else i will give negative ratings.
In an investment case, 1 million investment is required at the end of the 4th and
5th year, a profit of 2 million at the end of the 9th year, and a profit of 3 million at
the end of the 10th year, and the annual interest i = 5% of bank loans.
[a] Draw a Cash Flow diagram.
[b] Taking the end of the tenth year as the closing date, find P, F, and A respectively.
[c] Is it worth investing in this case?
SP: For question b, list the formulas in a format similar to (? /?, %, n).
[d] The interest of bank loans changes drastically when i =?
Transcribed Image Text:In an investment case, 1 million investment is required at the end of the 4th and 5th year, a profit of 2 million at the end of the 9th year, and a profit of 3 million at the end of the 10th year, and the annual interest i = 5% of bank loans. [a] Draw a Cash Flow diagram. [b] Taking the end of the tenth year as the closing date, find P, F, and A respectively. [c] Is it worth investing in this case? SP: For question b, list the formulas in a format similar to (? /?, %, n). [d] The interest of bank loans changes drastically when i =?
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