A company expects to receive the following cash flows in arrears from a commercial project: Year Total Annual Payment 1 to 10 $1,000 11 to 20 $2,000 21 to 30 $3,000 Suppose the annual interest rates are given as ¿(4) = 4% i=3% for year 1 to 10 for year 11 to 20 dx6) = 5% for year 21 to 30. Frequency of Payments monthly quarterly weekly Treating weekly payments as continuous payments (for convenience), calculate the total present value of all the cash flows from the project to the company.
A company expects to receive the following cash flows in arrears from a commercial project: Year Total Annual Payment 1 to 10 $1,000 11 to 20 $2,000 21 to 30 $3,000 Suppose the annual interest rates are given as ¿(4) = 4% i=3% for year 1 to 10 for year 11 to 20 dx6) = 5% for year 21 to 30. Frequency of Payments monthly quarterly weekly Treating weekly payments as continuous payments (for convenience), calculate the total present value of all the cash flows from the project to the company.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 29P
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