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Lester's rented some equipment at a cost of $800 for Years 1 through 3 and $900 for Years 4 and 5. Which of these correctly depicts a portion of the present value of multiple annuities time line?

Lester's rented some equipment at a cost of $800 for Years 1 through 3 and $900 for Years 4 and 5. Which of these correctly depicts a portion of the present value of multiple annuities time line?

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
Problem 1PS
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Lester's rented some equipment at a cost of $800 for Years 1 through 3 and $900 for Years 4 and 5. Which of these correctly depicts a portion of the present value of multiple annuities time line? Click the answer you think is right. Year 1 has two cash flows in the amounts of -$900 and $100. Year 4 has two cash flows in the amounts of $800 and $100. Year 1 has one cash flow in the amount of $800. Year 3 has one cash flow in the amount of -$800.
Transcribed Image Text:Lester's rented some equipment at a cost of $800 for Years 1 through 3 and $900 for Years 4 and 5. Which of these correctly depicts a portion of the present value of multiple annuities time line? Click the answer you think is right. Year 1 has two cash flows in the amounts of -$900 and $100. Year 4 has two cash flows in the amounts of $800 and $100. Year 1 has one cash flow in the amount of $800. Year 3 has one cash flow in the amount of -$800.
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