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What is the correct equation to solve for P based on the following cash flows: 200, 400 and 500 in years 1-3 respectively with an
What is the correct equation to solve for P based on the following cash flows: 200, 400 and 500 in years 1-3 respectively with an annual interest rate, compounded annually, of 6% for year 0-1, 8% for year 1-2 and 5% for year 2-3. Select one: a, P-$200 P=$200(P/E 6%, 1)- $400(P/A, 896, 1)(P/E 6%, 1)+ $500 (P/E 5%, 1 )(P/E 8%, 1)(P/E 696,1) O b. P=$200 P-$200(P/E 6%, 1)- $400(P/E 8%, 1)(P/E 696, 1)+ $500 (P/E 5%, 1)(P/E 8%, 2)(P/E 6963) O c. P=$200 P=$400(P/E 6%, 1)- $200(P/E 8%, 1)(P/E 696, 1)+ $500 (P/E 5%, 1 )(P/E 8%, 1)(P/E 696,1) d, P=$200 P=$200(P/E 6%, 1)+ $400(P/E 8%, 1)(P/E 696, 1)+ $500 (P/E 5%, 1 )(P/E 8%, 1)(P/E 696,1)
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