Q1) Consider the following cash flow: Year Cash Flow 0 -SP 1 1000 2 850 3 700 4 550 5 400 6 400 7 400 8 400 It is asked to compute the P value for the cash flow at a % interest. A. P=1000(P/A, a,8) - 150(P/G, a,8) + 150 (P/G, a,4) (P/F, a,4 B. P=400(P/A, a,8) + 600(P/A, a,5) - 150 (P/G, a,4) C. P=150(P/G, a,4) + 850(P/A, a,4) + 400 (P/A, a,4) (P/F, a,4) Which one is correct and compute P according to your choice. Note: a = St.No +1 (1 more of your student number's last digit)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Q1)
Consider the following cash flow:
Year
Cash Flow
0
-SP
1
1000
2
850
3
700
4
550
5
400
6
400
7
400
8
400
It is asked to compute the P value for the cash flow at a % interest.
A. P=1000(P/A, a,8) - 150(P/G, a,8) + 150 (P/G, a,4) (P/F, a,4
B.
P=400(P/A, a,8) + 600(P/A, a,5) - 150 (P/G, a,4)
C. P=150(P/G, a,4) + 850(P/A, a,4) + 400 (P/A, a,4) (P/F, a,4)
Which one is correct and compute P according to your choice.
Note: a = St.No +1 (1 more of your student number's last digit)
Transcribed Image Text:Q1) Consider the following cash flow: Year Cash Flow 0 -SP 1 1000 2 850 3 700 4 550 5 400 6 400 7 400 8 400 It is asked to compute the P value for the cash flow at a % interest. A. P=1000(P/A, a,8) - 150(P/G, a,8) + 150 (P/G, a,4) (P/F, a,4 B. P=400(P/A, a,8) + 600(P/A, a,5) - 150 (P/G, a,4) C. P=150(P/G, a,4) + 850(P/A, a,4) + 400 (P/A, a,4) (P/F, a,4) Which one is correct and compute P according to your choice. Note: a = St.No +1 (1 more of your student number's last digit)
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