The unknown value of A from the cash flows in table below is _________________.
ID: 2653350 • Letter: T
Question
The unknown value of A from the cash flows in table below is _________________.
i= 6% per year
Year
0
1
2
3
4
5
Cash Flow
-$5,000
4A
3A
2A
A
5A
Select one:
a. $395.21
b. $274.80
c. $349.97
d. $434.63
For the cash flows provided in the table below, determine the unknown value “A”. Use an interest rate of 7%.
Year
0
1
2
3
4
5
Cash flow
12,000
-A
-2A
-3A
-4A
-6A
Select one:
a. $973.60
b. $ 846.04
c. $791.80
d. $654.56
Given the cash flows in table below, determine the rate of return.
Year
0
1
2
3
4
Cash Flow
$10K
$0
$5K
$0
$10K
Select one:
a. 100%
b. 11.2%
c. Cannot determine
d. 8.91%
Year
0
1
2
3
4
5
Cash Flow
-$5,000
4A
3A
2A
A
5A
Explanation / Answer
The unknown value of A from the cash flows in table below is _________________.
i= 6% per year
5000 = 4A*1/1.06 + 3A*1/1.06^2 + 2A*1/1.06^3 + A*1/1.06^4 + 5A*1/1.06^5
5000 = 12.651197 A
A = 5000/12.651197
A = $ 395.21
Answer
a. $395.21
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