Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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4 (a) Evaluate the cash flow diagram given by the figure
below. Determine a Net Present Value and a Net
Equivalent Annual Payment. Use an interest rate of i =
1%. (Hints: Arrows are end-of-the-year cash flows.
These arrows pointing down represent costs and
upward arrows are revenues.
(b) Repeat (a) with an interest rate of i = 10%.
$400
$400
$300
$300
$200
$200
1
2
3
5
6.
7
8
$200
$200
$200
$500
$600
10
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Transcribed Image Text:4 (a) Evaluate the cash flow diagram given by the figure below. Determine a Net Present Value and a Net Equivalent Annual Payment. Use an interest rate of i = 1%. (Hints: Arrows are end-of-the-year cash flows. These arrows pointing down represent costs and upward arrows are revenues. (b) Repeat (a) with an interest rate of i = 10%. $400 $400 $300 $300 $200 $200 1 2 3 5 6. 7 8 $200 $200 $200 $500 $600 10
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