A set of cash flows begins at $15,000 the first year, with an increase each year until n = 12 years. If the interest rate is 8%, what is the present value when (a) the annual increase is $1000? (b) the annual increase is 8%?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
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A set of cash flows begins at $15,000 the first year, with an increase each year until n = 12 years. If the interest rate is 8%, what is the present value when (a) the annual increase is $1000? (b) the annual increase is 8%?

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