$1,000(1.2)³ $1,000(1.2)? $1,000(1.2)' – $1,000 2 3 End of Year

SWFT Corp Partner Estates Trusts
42nd Edition
ISBN:9780357161548
Author:Raabe
Publisher:Raabe
Chapter3: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 51P
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Consider the following EOY geometric sequence of cash flows and determine the P, A, and F equivalent values. The rate of increase is 20% per year after the first year, and the interest rate is 25% per year. Suppose the cash-flow sequence continues for 10 years (instead of four). Determine the new values of P, A, and F.

$1,000(1.2)³
$1,000(1.2)?
$1,000(1.2)' –
$1,000
2
3
End of Year
Transcribed Image Text:$1,000(1.2)³ $1,000(1.2)? $1,000(1.2)' – $1,000 2 3 End of Year
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