Ata certain discount rate the present values of the following cash flows are equal a) 808 at the end of 4 years b) 426 at the end of 4 years plus 1000 at the end of 8 years t the same discount rate, find the net present value of 100 deposited now, 200 deposited in 4 years and a withdrawal of 128 at the end of 8 years DA 157.72 B 819.94 C The answer does not appear here D. 1090.84 E 195.08

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA3: Time Value Of Money
Section: Chapter Questions
Problem 11E
icon
Related questions
Question
Question 1
At a certain discount rate the present values of the following cash flows are equal
(a) 808 at the end of 4
(b) 426 at the end of 4 years plus 1000 at the end of 8 years
At the same discount rate, find the net present value of 100 deposited now, 200 deposited in 4 years and a withdrawal of 128 at the end of 8 years
A 157 72
B 819.94
C The answer does not appear here
D. 1090.84
OE 195 08
Transcribed Image Text:Question 1 At a certain discount rate the present values of the following cash flows are equal (a) 808 at the end of 4 (b) 426 at the end of 4 years plus 1000 at the end of 8 years At the same discount rate, find the net present value of 100 deposited now, 200 deposited in 4 years and a withdrawal of 128 at the end of 8 years A 157 72 B 819.94 C The answer does not appear here D. 1090.84 OE 195 08
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Future Value
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage