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Problem 1: A structural engineering consulting company is examining its cash flow requirements for the next 5 years. Specifically, the table below summarizes the net
Problem 1: A structural engineering consulting company is examining its cash flow requirements for the next 5 years. Specifically, the table below summarizes the net cash flow associated with a new contract. The interest rate is 30% per year, compounded semi-annually. Year 0 1 2 3 4 5 Cash Flow, $ 30,000 -21,000 -24,000 15,000 -10,000 a) Draw the cash flow diagram. b) Identify the following 5 parameters: r, t, CP, m, PP c) Formulate the solution for the equivalent future worth at the end of the fifth year. (Setup the solution using correct economy factors. DO NOT CALCULATE the answer.) 0
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