In the following cash flows diagram, Determine the value of F that makes the two cash flows diagrams equivalent if the interest rate i = 12% per year? 100 100 100 100 100 100 F 012 3 4 5 6 3. End of Year End of Year a. $428 b. $596 c. $704 d. $686

Q: In the following cash flows diagram, Determine the value of F that makes the two cash flows diagrams…

A: Future value refers to the value of the current deposit of the amount or series of deposit at some…

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A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

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A: The present value is the value of the sum received at time 0 or the current period. It is the value…

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A: PRESENT WORTH FORMULA: PRESENT WORTH=FUTURE VALUE1+RATETIME

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Q: 650 540 к к 430 320 210 100 2 3 4 1 2 3 5 6 7 LO 4.

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A: The interest rate is 8%. We have to calculate the present value.

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.