The following cash flow diagram is for problems 12 through 14. Use 10% per period for all problems below.

---------500--------- 1000----- 1000------ 1500

0 --------- 1 --------- 2 --------- 3 --------- 4

What is the present value (P) of the cash flows? a. $2300 b. $2750 c. $3050 d. $3650 25 points

QUESTION 12 Find the Equivalent Annual Payment of the above cash flows.

$827 $870 $916 $964 25 points

QUESTION 13 Find the future value (F) of the cash flows at the end of period 4. $4100 $4250 $4465 $4667 25 points

QUESTION 14 For the above cash flow diagram, which formula will give you the present value of the cash flows?

a. P=50(P/F,i,1) + 100(P/F,i,2) + 150(P/F,i,3) + 200(P/F,i,4) b. P=50(P/A,i,4) + 50(P/F,i,2) + 100(P/F,i,3) + 150(P/F,i,4) c. a) and b) d. None of the above