1. Find the present value of the following cash flow streams under the following conditions:
Year Cash Flow X Cash Flow Y
1 $600 $200
2 500 300
3 400 400
4 300 500
5 200 600
a. The appropriate discount rate is 9%.
b. What is the value of each cash flow stream at a zero percent discount rate?
2. Nelson wants to buy a car that costs $35,000. He has arranged to borrow the total purchase price
of the car from her credit union at 3 percent interest rate. The loan requires quarterly payments for
a period of five years. If the first payment is due three months (one quarter) after purchasing the
car, what will be the amount of Nelson’s quarterly payment on the loan?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more