Hi I need some help with question
Workings are provided for part i in attachment
Thank you
Time Cash Flow Interest Rate
0 6000 9%
1 3000 9%
2 0 9%
3 0 12%
4 -5000 12%
5 0 12%
6 0 10%
7 -5000 8%
8 0 8%
9 0 8%
i.
Given the cash flows and annual interest rates above, what is the value of all of these cash flows at:
a. Time 0
b. Time 3
c. Time 7
ii. Rank your preferences between the choices below (1st, 2nd and 3rd choice) and explain your choice
- The cash flows in the table above
- $1,000 today (T0)
- $8,000 at Time 9
Workings are provided for part i in attachment
Thank you
Time Cash Flow Interest Rate
0 6000 9%
1 3000 9%
2 0 9%
3 0 12%
4 -5000 12%
5 0 12%
6 0 10%
7 -5000 8%
8 0 8%
9 0 8%
i.
Given the cash flows and annual interest rates above, what is the value of all of these cash flows at:
a. Time 0
b. Time 3
c. Time 7
ii. Rank your preferences between the choices below (1st, 2nd and 3rd choice) and explain your choice
- The cash flows in the table above
- $1,000 today (T0)
- $8,000 at Time 9