What is the present value of the cash flow given below, interest at 8% compounded semi-annually. 0.5 1.5 2 2.5 3.5 4 4.5 5 5.5 6.5 7 $500 $500 $500 $500 $500 $500 $500 $500 $50 O a. $3,333 O b. $4,375 O c. $5,383 O d. $6,307

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...
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What is the present value of the cash flow given below, interest at 8% compounded semi-annually.
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5.5
6.5
7
7.5
$500 $500 S500 $500 S500 $500 $500 $500 $500 $560
O a. $3,333
O b. $4,375
O c. $5,383
O d. $6,307
Transcribed Image Text:What is the present value of the cash flow given below, interest at 8% compounded semi-annually. 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5.5 6.5 7 7.5 $500 $500 S500 $500 S500 $500 $500 $500 $500 $560 O a. $3,333 O b. $4,375 O c. $5,383 O d. $6,307
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