Question
You have been given the following information about the cash flows for a project: 0 1 2 3 4 5 6 7 8 9 10
You have been given the following information about the cash flows for a project: 0 1 2 3 4 5 6 7 8 9 10 |---------|---------|---------|---------|---------|---------|---------|---------|--------|--------| 2,000 2,000 2,000 2,000 2,000 Based on the above cash flows, you have just entered the following information into your calculator. The cash flows you are entering into the calculator occur, as shown on the above time line. Note that your calculator is set in the end mode. PMT = $2,000 N = 5 I = 10 PV = ? = 7,581.57 From this calculation you get an answer of $7,581.57. You switch your calculator to the beg mode. You then enter the following information into your calculator. FV = 7,581.57 I = 10 N = 2 PV = ? You get the answer $6,265.76. $6,265.76 represents the value of these payments at which point on the above time line? A. 0 B. 1 C. 2 D. 3 E. 4 F. 5 G. 6
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started