Please help me with question 14, which has (a)(b) sub questions. Thank you
Posted: Wed Mar 30, 2022 3:45 pm
Please help me with question 14, which has (a)(b) sub questions.
Thank you
V4. Consider the cash flow sequence $10K, $15K, –$20K, and $40K, at time t = 0,1,2,4 years, respectively. (a) Find the future value of the cash flow at t 4 years, using the annual nominal rate p = 3% under (i) continuous compounding, (ii) quarterly compounding, and (ii) annual compounding. (b) Find the present value Vp of the above cash flow sequence by using the computed future value VF in (a) for cases (i), (ii), and (iii) by first showing the relationship between Vp and VF in each case. (a) Find the internal rate of return of the coob $30K (9)
Thank you
V4. Consider the cash flow sequence $10K, $15K, –$20K, and $40K, at time t = 0,1,2,4 years, respectively. (a) Find the future value of the cash flow at t 4 years, using the annual nominal rate p = 3% under (i) continuous compounding, (ii) quarterly compounding, and (ii) annual compounding. (b) Find the present value Vp of the above cash flow sequence by using the computed future value VF in (a) for cases (i), (ii), and (iii) by first showing the relationship between Vp and VF in each case. (a) Find the internal rate of return of the coob $30K (9)