An investment ot S100,000 yieids a net annuat income of $19,000 at EOY1 which decreases by SLO00 per year until EOY 10. What is the future equivalent of all cash-flows at EOY 10 if the interest is 8% per year? O a $98002 Ob $3467 Oa $3.270 Od -S8.025 Oa-$34233

An investment ot S100,000 yieids a net annuat income of $19,000 at EOY1 which decreases by SLO00 per year until EOY 10. What is the future equivalent of all cash-flows at EOY 10 if the interest is 8% per year? O a $98002 Ob $3467 Oa $3.270 Od -S8.025 Oa-$34233

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 27P

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

An investment of $100,000 yields a net annual income of $19,000 at EOY I which decreases by S1.000 per year until EOY 10. What is the future equivalent
of all cash-flows at EOY 10 if the interest is 8% per year?
O a $98,002
Ob $3.467
OC. $3,270
O d.-S8,025
Oa-$34,233

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