Question: This question relates to a cash flow series that starts a month from now in the amount of 41 million yen, and continues for the following 23 months, with a decreasing gradient in the amount of 500,000 yen at the rate of 0.313% per month. Today is March 31. On April 1 two years from now, the interest rate changes to 0.393% per month. Another series of cash flows that starts on April 30 two years from now starts with a cash flow that is negative in the amount of 31.3 million yen. That second series of cash flows is a uniform series and consists of 36 cash flows. Draw the related cash flow diagram and find the Net Present Worth of both series.
Question: This question relates to a cash flow series that starts a month from now in the amount of 41 million yen, and continues for the following 23 months, with a decreasing gradient in the amount of 500,000 yen at the rate of 0.313% per month. Today is March 31. On April 1 two years from now, the interest rate changes to 0.393% per month. Another series of cash flows that starts on April 30 two years from now starts with a cash flow that is negative in the amount of 31.3 million yen. That second series of cash flows is a uniform series and consists of 36 cash flows. Draw the related cash flow diagram and find the Net Present Worth of both series.
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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Transcribed Image Text:Question: This question relates to a cash flow series that starts a month from now in the amount of 41 million yen, and continues for the
following 23 months, with a decreasing gradient in the amount of 500,000 yen at the rate of 0.313% per month. Today is March 31. On April 1
two years from now, the interest rate changes to 0.393% per month. Another series of cash flows that starts on April 30 two years from now
starts with a cash flow that is negative in the amount of 31.3 million yen. That second series of cash flows is a uniform series and consists of
36 cash flows. Draw the related cash flow diagram and find the Net Present Worth of both series.
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