Assume that you are given a cash flow diagram as in below to calculate the equivalent present value of all the cash flows on the timeline. The first step is to determine how many different cash flows you need to convert to the present time as parts of Po. So based on the given cash flow diagram, how many different cash flows you need to convert to the present time as parts of Po? i=20% 4 4 $200 woman fo 4400 5 $100

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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Question 22
Assume that you are given a cash flow diagram as in below to calculate the equivalent present value of all the cash flows on the timeline. The first step is to
determine how many different cash flows you need to convert to the present time as parts of Po. So based on the given cash flow diagram, how many different cash
flows you need to convert to the present time as parts of Po?
i= 20%
PK 2 3 4
5
400 $200 wegned to $100
Question 23
What is the value of Po?
O $477.91
O $277.76
O $166.66
$400
O $33.49
Transcribed Image Text:Question 22 Assume that you are given a cash flow diagram as in below to calculate the equivalent present value of all the cash flows on the timeline. The first step is to determine how many different cash flows you need to convert to the present time as parts of Po. So based on the given cash flow diagram, how many different cash flows you need to convert to the present time as parts of Po? i= 20% PK 2 3 4 5 400 $200 wegned to $100 Question 23 What is the value of Po? O $477.91 O $277.76 O $166.66 $400 O $33.49
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