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1. (a) Consider a cash flow and interest profile as shown Year o -1000 year 1 3000 year 2 2000 year 3 10000 Cash flow
1. (a) Consider a cash flow and interest profile as shown Year o -1000 year 1 3000 year 2 2000 year 3 10000 Cash flow at end of year 8% 10% Interest Rate During Year NA 6% The worth of these cash flows at the end of year 3 is (a) 5000 (b) 5504.72 (c) 5994.56 (d) 5440 Note the calculation is sufficiently easy that full tables are not provided for all interest rates for this
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