Question 01 Pakistan International Airways has recently conducted a survey on its services and revenues. The surveys show that there was constant revenue of $ 1,000,000 for the first ten years since 2001 and it reduced with constant rate of $ 100,000 every year for next 10 years (i.e. 2021). PIA wants to calculate what cumulative sum would be equivalent to these revenues at the end of 2021 if the budget had an interest rate of 9.5% compounded annually. Draw cash flow for this scenario.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Question 01
Pakistan International Airways has recently conducted a survey on its services and
revenues. The surveys show that there was constant revenue of $ 1,000,000 for the first
ten years since 2001 and it reduced with constant rate of $ 100,000 every year for next 10
years (i.e. 2021). PIA wants to calculate what cumulative sum would be equivalent to
these revenues at the end of 2021 if the budget had an interest rate of 9.5% compounded
annually. Draw cash flow for this scenario.
Transcribed Image Text:Question 01 Pakistan International Airways has recently conducted a survey on its services and revenues. The surveys show that there was constant revenue of $ 1,000,000 for the first ten years since 2001 and it reduced with constant rate of $ 100,000 every year for next 10 years (i.e. 2021). PIA wants to calculate what cumulative sum would be equivalent to these revenues at the end of 2021 if the budget had an interest rate of 9.5% compounded annually. Draw cash flow for this scenario.
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