
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
A series of cash flows are established on an account as listed below.
- Payment of P1.325 at the end of the 2nd, 4th, and 7th year at an interest rate of 7.35% compounded quarterly.
- Payment of P1.250 at the end of 2nd, and 5th year at an interest rate of 8.25% compounded semi-annually. - Withdrawal of P1,680 at the end of 3rd, and 6th year at an interest rate of 6.15% compounded bimonthly.
Determine the following:
Net present worth of all cash flows (indicate negative cash flows by adding negative sign to your answer).
Future worth of all payments after 12 years.
Amount to be added (positive or negative cash flow) at the end of 4th year at an interest rate of 10% compounded annually, to balance the cash flows.
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