Technifi
  • Home
  • Accounting
  • HOW TOS
  • Tech
    • Broadband
    • IPhone
    • Android
    • Windows
  • Education
    • MCQs
    • Textbook Solutions
    • Expert Q&A
  • Projects
    • Matlab
    • simulink
  • Subscribe

The following two cash flows are said to be economically equivalent at 8% interest. Determine the value of x for the second cash flow series…

Published by Admin on August 7, 2019August 7, 2019

Home/Education/Expert Q&A/The following two cash flows are said to be economically equivalent at 8% interest. Determine the value of x for the second cash flow series…
Question:

The following two cash flows are said to be economically equivalent at 8% interest. Determine the value of x for the second cash flow series. $600 $600 S600 $600 $6000 $600

The following two cash flows are said to be economically equivalent at 8% interest. Determine the value of x for the second cash flow series. $600 $600 S600 $600 $6000 $600

Click the button below to view answer!

View Answer

Technifi Expert’s Answer:

Present value = (P/r)*[1 – (1+r)^-n

in case of first cash flow , P = $600 , n = 5 , r = 0.08

Present value of first cash flow = $600 + ($600/0.08)*[1- (1+0.08)^-5 = $2,996

present value of second cash flow = X/(1+0.08) + X/(1+0.08)^4

= 1.66*X

Present value of first cash flow = present value of second cash flow

$2,996 = 1.66X

X = $2,996/1.66 = $1,805

If you happen to run into some problem while following the steps, please make sure to let us know in the comment section below, we’ll do our best to solve it. Apart from that, you can contact us on Facebook and Twitter, however we can’t guarantee a rapid reaction time over those platform

Share this:

  • Twitter
  • Facebook

Like this:

Like Loading...

Related Posts

  • Question: The following information applies to the questions... The following information appl...

    Home/Education/Expert Q&A/Question: The following information applies to the questions... The following information appl... Question: Question:…

  • CONCEPTUAL PROBLEM The man attempts to pull the four whe...

    Home/Education/Expert Q&A/CONCEPTUAL PROBLEM The man attempts to pull the four whe... Question: CONCEPTUAL PROBLEM The…

  • Which of the following correctly describe the rough endoplasmic reticul...

    Home/Education/Expert Q&A/Which of the following correctly describe the rough endoplasmic reticul... Question: Click the button…

  • Compute the weakest precondition for each of the following statements...

    Home/Education/Compute the weakest precondition for each of the following statements... Question: Compute the weakest precondition…

  • A 32 year old woman was admitted to the hospital following 2 & 1...

    Home/Education/Expert Q&A/A 32 year old woman was admitted to the hospital following 2 & 1...…

  • 2) Find the order of growth of the following sums...

    Home/Education/Expert Q&A/2) Find the order of growth of the following sums... Question: 2) Find the…

Categories: Expert Q&A
Tags: determineeconomicallyequivalentflowsfollowinginterestvalue

0 Comments

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Can’t find?

Related Posts

  • Question: The following information applies to the questions... The following information appl...

    Home/Education/Expert Q&A/Question: The following information applies to the questions... The following information appl... Question: Question:…

  • CONCEPTUAL PROBLEM The man attempts to pull the four whe...

    Home/Education/Expert Q&A/CONCEPTUAL PROBLEM The man attempts to pull the four whe... Question: CONCEPTUAL PROBLEM The…

  • Which of the following correctly describe the rough endoplasmic reticul...

    Home/Education/Expert Q&A/Which of the following correctly describe the rough endoplasmic reticul... Question: Click the button…

  • Compute the weakest precondition for each of the following statements...

    Home/Education/Compute the weakest precondition for each of the following statements... Question: Compute the weakest precondition…

  • A 32 year old woman was admitted to the hospital following 2 & 1...

    Home/Education/Expert Q&A/A 32 year old woman was admitted to the hospital following 2 & 1...…

  • 2) Find the order of growth of the following sums...

    Home/Education/Expert Q&A/2) Find the order of growth of the following sums... Question: 2) Find the…

Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Cookie Policy

Related Posts

Expert Q&A

Fundamentals of Microelectronics….

Question: Fundamentals of Microelectronics Click the button below to view answer! If you happen to run into some problem while following the steps, please make sure to let us know in the comment section below, Read more…

Expert Q&A

Let X1 and X2 be two independent continuous uniform random variables on (0,2). Use convolution…

Question: (a) Let X1 and X2 be two independent continuous uniform random variables on (0,2). Use convolution theorem to find the PDF of X1 + X2. (b) Let Y1 ~ N(1,4) and Y2 ~ N(4,9) Read more…

Expert Q&A

The member of the library can borrow a book for number of days as per the policy and return it….

Question: Build a state diagram for the “book” based upon the following information of the library. The member of the library can borrow a book for number of days as per the policy and return Read more…


  • Blog
  • Cart
  • Checkout
  • Home
  • My account
  • Shop
  • Subscribe
Hestia | Developed by ThemeIsle
%d bloggers like this: