A certain end of year cash flows are expected to be P 7,000.00 at the end of the 3rd year, P 9,000.00 at the end of the 4th year, P 11,000.00 at the end of the 5th year, and P 13,000.00 at the end of the 6th year. Using 15% interest per year, determine the equivalent a. present worth at the beginning of the first year and b. uniform annual worth at the end of each year of the 6 years.
A certain end of year cash flows are expected to be P 7,000.00 at the end of the 3rd year, P 9,000.00 at the end of the 4th year, P 11,000.00 at the end of the 5th year, and P 13,000.00 at the end of the 6th year. Using 15% interest per year, determine the equivalent a. present worth at the beginning of the first year and b. uniform annual worth at the end of each year of the 6 years.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
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A certain end of year cash flows are expected to be P 7,000.00 at the end of the
3rd year, P 9,000.00 at the end of the 4th year, P 11,000.00 at the end of the 5th
year, and P 13,000.00 at the end of the 6th year. Using 15% interest per year,
determine the equivalent a. present worth at the beginning of the first year and b.
uniform annual worth at the end of each year of the 6 years. Calculate it manually, not in excel. Show complete solution and formula used. Please don't type it. Write it in a paper so that it can understand well. Thank you!
ANS. P 20,837.60, AND P 5,506.06
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