question 14 (Present value of complex cash flows) How much do you have to deposit today so that beginning 11 years from now you can withdraw $8,000 a year for the next 8 years (periods 11 through 18) plus an additional amount of $16,000 in the last year (period 18)? Assume an interest rate of 8percent.

Step 1:PV computation at year 16 end. FV=Maturity payment 16000 PMT=Annual payment 8000 r= 8%…

Answered: (Present value of complex cash flows)…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 12MC: (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest...

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(Present value of complex cash flows) How much do you have to deposit today so that beginning 11 years from now you can withdraw $8,000 a year for the next 8 years (periods 11 through 18) plus an additional amount of $16,000 in the last year (period 18)? Assume an interest rate of 8 percent.