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A friend offers to give you 10 payments of $1000 at annual time periods zero through 10 except year three if you give him $9000

A friend offers to give you 10 payments of $1000 at annual time periods zero through 10 except year three if you give him $9000 at year 3, as shown. Evaluate the income, investment, income opportunity with the ROR of 20% using the Escrow Modified ROR approach. Confirm your answer with NVP analysis. all steps and formula included.

0

1

2

3

4

5

6

7

8

9

10

I = 1000

I=1000

I=1000

C=9000

I=1000

I=1000

I=1000

I=1000

I=1000

I=1000

I=1000

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