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)

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter6: Saving And Investing
Section6.1: Why Save?
Problem 6R
icon
Related questions
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)
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
Economics
ISBN:
9780078747663
Author:
McGraw-Hill
Publisher:
Glencoe/McGraw-Hill School Pub Co
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours…
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Microeconomic Theory
Microeconomic Theory
Economics
ISBN:
9781337517942
Author:
NICHOLSON
Publisher:
Cengage
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Microeconomics A Contemporary Intro
Microeconomics A Contemporary Intro
Economics
ISBN:
9781285635101
Author:
MCEACHERN
Publisher:
Cengage