a. In what year will there be no payment? b. What is the present worth of all payment? c. What is the equivalent annual payment?
a. In what year will there be no payment? b. What is the present worth of all payment? c. What is the equivalent annual payment?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Draw the cashflow diagram and solve using the formula
Transcribed Image Text:4. Given the series of payments at the end of each year. i = 6%
Year 1
90,000
85,000
Year 2
Year 3
80,000
a. In what year will there be no payment?
b. What is the present worth of all payment?
c. What is the equivalent annual payment?
Ans. 19, P 597,699.71, P 53,566.36
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