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The cash flow for a company for their investment account is shown in the table below: Cash Year Cash inflow Outflow 0 $ 50,000 ($
The cash flow for a company for their investment account is shown in the table below: Cash Year Cash inflow Outflow 0 $ 50,000 ($ 2,000) one ($ 5,100) 2nd 3Q ($ 4,500) $ 1,600 (36Q) $0 $0 12Q ($ 8,500) 200 ($ 4,500) $ 7,500 ($ 6,500) $0 (169) 3 4 5 6 N 8 a. If the value of Q is $ 2,500 at what interest rate will the net cash flow be balanced and equivalent? (Indian: at what interest rate per year NPW is equal to zero) b. If the interest rate is 4% per year compounded yearly, for what value of Q will the cash flow have equivalence? (Indian: for what value of Q, NPW is equal to zero)
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