Migs purchases his own custom-built PC for P15,000 downpayment and 8 deferred semi- annual payments of P7,000 each, starting three years from today. a. Draw a cash flow diagram from the buyer's perspective b. Determine the present value of the investment if the interest is 12% compounded semi-annually.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
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PLEASE ANSSWER ASAP! UPVOTE WILL BE GIVEN (Please write the complete solutions legibly. No long explanation needed. Answer in 2 decimal places and box the final answer.)

Migs purchases his own custom-built PC for P15,000 downpayment and 8 deferred semi-
annual payments of P7,000 each, starting three years from today.
a. Draw a cash flow diagram from the buyer's perspective
b. Determine the present value of the investment if the interest is 12% compounded
semi-annually.
Transcribed Image Text:Migs purchases his own custom-built PC for P15,000 downpayment and 8 deferred semi- annual payments of P7,000 each, starting three years from today. a. Draw a cash flow diagram from the buyer's perspective b. Determine the present value of the investment if the interest is 12% compounded semi-annually.
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