Migs purchases his own custom-built PC for P15,000 downpayment and 8 deferred semi- annual payments of P7,000 each, starting three years from today. a. Draw a cash flow diagram from the buyer's perspective b. Determine the present value of the investment if the interest is 12% compounded semi-annually.
Migs purchases his own custom-built PC for P15,000 downpayment and 8 deferred semi- annual payments of P7,000 each, starting three years from today. a. Draw a cash flow diagram from the buyer's perspective b. Determine the present value of the investment if the interest is 12% compounded semi-annually.
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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PLEASE ANSSWER ASAP! UPVOTE WILL BE GIVEN (Please write the complete solutions legibly. No long explanation needed. Answer in 2 decimal places and box the final answer.)
![Migs purchases his own custom-built PC for P15,000 downpayment and 8 deferred semi-
annual payments of P7,000 each, starting three years from today.
a. Draw a cash flow diagram from the buyer's perspective
b. Determine the present value of the investment if the interest is 12% compounded
semi-annually.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F056d53dc-3f4d-4ce6-b212-dcc4942aa42d%2F141dc89e-6f40-493a-b9f8-1c5913450610%2Fyorlknr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Migs purchases his own custom-built PC for P15,000 downpayment and 8 deferred semi-
annual payments of P7,000 each, starting three years from today.
a. Draw a cash flow diagram from the buyer's perspective
b. Determine the present value of the investment if the interest is 12% compounded
semi-annually.
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