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hjlf
3 years ago
11

a set of cash flows begins at 20000 the first year with a decrease of $2000 each year until n = 10. With an interest rate of 7%,

what is the equivalent uniorm annual cash flow

Business
1 answer:
Bezzdna [24]3 years ago
7 0

Answer:

Explanation:

Present value (PV) is sum of all cash flows discounted at 7%.

(a) Annual decrease = $2,000

PV is computed as follows.

Year Cash Flow ($)     PV Factor at 7%     Discounted Cash Flow ($)

               (A)                     (B)                     (A) x (B)

1 20,000 0.9346 18,692

2 18,000 0.8734 15,722

3 16,000 0.8163 13,061

4 14,000 0.7629 10,681

5 12,000 0.7130 8,556

6 10,000 0.6663 6,663

7 8,000 0.6227 4,982

8 6,000 0.5820 3,492

9 4,000 0.5439 2,176

10 2,000 0.5083 1,017

PV ($) = 85,041

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Economic expansion throughout the rest of the world raises the world interest rate. Use the Mundell–Fleming model to illustrate
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Answer: The answer is provided below

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The diagram has been attached.

5 0
2 years ago
Two of the concerns that a producer of goods, would face with a greater number of channel levels are ________ and greater channe
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Less control

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3 years ago
Quartz Instruments had Retained Earnings of $150,000 at December 31, 2018. Net income for 2019 was $95,000, and dividends for 20
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Answer:

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