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The following table shows the receipts and disbursements for a given investment. Interest rate is at 14%. 2. The following table shows the receipts and
The following table shows the receipts and disbursements for a given investment. Interest rate is at 14%.
2. The following table shows the receipts and disbursements for a given investment. Interest rate is at 14% END OF YEAR 0 1 2 3 4 RECEIPTS ($) 0 10,000 10,000 8,000 8,000 + 6250 DISBURSEMENTS ($) 25,000 0 2,000 0 0 AWIN a) Construct the Money Flow Diagram b) Determine the desirability of the investment using: b.1) Present Equivalent b.2) Annual Equivalent b.3) Future EquivalentStep by Step Solution
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