Year 0 Year 1 Year 2 Year 3 Cash Flow at End of Year -$1,000 $3,000 $2,000 $1,000 Interest Rate During Year NA 6% 8% 10%

Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 14.7BE
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Consider a cash flow and interest profile as shown: The worth at the end of Year 3 of these cash flows is: a. $5,000.00 b. $5,504.72 c. $5,994.56  d. $5,440.00

Year 0 Year 1 Year 2 Year 3
Cash Flow at End of Year -$1,000 $3,000 $2,000 $1,000
Interest Rate During Year
NA
6%
8%
10%
Transcribed Image Text:Year 0 Year 1 Year 2 Year 3 Cash Flow at End of Year -$1,000 $3,000 $2,000 $1,000 Interest Rate During Year NA 6% 8% 10%
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