Determine values for present worth (PW or NPV), future worth (FW), annual worth (AW) AND discounted payback (DPBP) for the following cash flow system. Consider two interest rate scenarios in your evaluations: a. 4% per year, compounded annually b. 12% per year, compounded annually. End of Year Cash Flow 2 3 4 5 6 0 1 -$40,000 $8,200 $8,200 $8,200 $8,200 $8,200 $8,200 7 $8,200

Determine values for present worth (PW or NPV), future worth (FW), annual worth (AW) AND discounted payback (DPBP) for the following cash flow system. Consider two interest rate scenarios in your evaluations: a. 4% per year, compounded annually b. 12% per year, compounded annually. End of Year Cash Flow 2 3 4 5 6 0 1 -$40,000 $8,200 $8,200 $8,200 $8,200 $8,200 $8,200 7 $8,200

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 29P

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