. For the net cash flow sequence of -$10,000 in year zero, +$3,000 in year one,
ID: 2753884 • Letter: #
Question
. For the net cash flow sequence of -$10,000 in year zero, +$3,000 in year one, -$2,000 in year two, +$8,000 in year three, and +$6,000 in year four, what is the number of possible rate of return values i?
Factor
Name
Formula
Purpose
(F/P, i, N)
Single payment compound amount factor
Moves a single payment to N periods later in time
(P/F, i, N)
Single payment present worth factor
Moves a single payment to N periods earlier in time
(A/F, i, N)
Sinking Fund factor
Takes a single payment and spreads into a uniform series over Nearlier periods. The last payment in the series occurs at the same time as F.
(F/A, i, N)
Uniform Series Compound Amount factor
Takes a uniform series and moves it to a single value at the time of the last payment in the series.
(A/P, i, N)
Capital Recovery Factor
Takes a single payment and spreads it into a uniform series over Nlater periods. The first payment in the series occurs one period later than P.
(P/A, i, N)
Uniform Series Present Worth Factor
Takes a uniform series and moves it to a single payment one period earlier than the first payment of the series.
(P/G, i, N)
Arithmetic Gradient Present Worth Factor
Takes a arithmetic gradient series and moves it to a single payment two periods earlier than the first nonzero payment of the series.
(A/G, i, N)
Arithmetic Gradient to Uniform Series Factor
Takes a arithmetic gradient series and converts it to a uniform series. The two series cover the same interval, but the first payment of the gradient series is 0.
Factor
Name
Formula
Purpose
(F/P, i, N)
Single payment compound amount factor
Moves a single payment to N periods later in time
(P/F, i, N)
Single payment present worth factor
Moves a single payment to N periods earlier in time
(A/F, i, N)
Sinking Fund factor
Takes a single payment and spreads into a uniform series over Nearlier periods. The last payment in the series occurs at the same time as F.
(F/A, i, N)
Uniform Series Compound Amount factor
Takes a uniform series and moves it to a single value at the time of the last payment in the series.
(A/P, i, N)
Capital Recovery Factor
Takes a single payment and spreads it into a uniform series over Nlater periods. The first payment in the series occurs one period later than P.
(P/A, i, N)
Uniform Series Present Worth Factor
Takes a uniform series and moves it to a single payment one period earlier than the first payment of the series.
(P/G, i, N)
Arithmetic Gradient Present Worth Factor
Takes a arithmetic gradient series and moves it to a single payment two periods earlier than the first nonzero payment of the series.
(A/G, i, N)
Arithmetic Gradient to Uniform Series Factor
Takes a arithmetic gradient series and converts it to a uniform series. The two series cover the same interval, but the first payment of the gradient series is 0.
Explanation / Answer
possible rate of return of value i is 14% , where the inflows are equal to outflow.
(A/G, i, N)
Arithmetic Gradient to Uniform Series Factor
Takes a arithmetic gradient series and converts it to a uniform series. The two series cover the same interval, but the first payment of the gradient series is 0.
year 0 1 2 3 4 (10,000) 3,000 (2,000) 8,000 6,000 Discount i=14% 1 0.8772 0.7695 0.6750 0.5921 (10,000) 2,632 (1,539) 5,400 3,552 44.9Related Questions
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