Consider the cash flows in the table below: Which one of the following is correc
ID: 1091443 • Letter: C
Question
Consider the cash flows in the table below: Which one of the following is correct for this cash flow? A. 100(P/A, i, 5) = 50 + 10(A/G, i, 5) B. 100 = 50 + 10(A/G, i, 5) + 50(P/F, i, 5) C.None of the equations are correct. D. { 50(P/A, i, 5) + 10(P/G, i, 5) + 50(P/F, i, 5)}/ {100} = 1 Given the cash flow diagram below, the unknown value X may be computed from the following equation. Year 01 2 3 4 5 6 7 Cash Flow 0 -$100 -$100 -$100 X -$100 -$100 -$100 A. [100(F/A, i, 4) + 100(P/A, i, 3)] -100 [100(P/A, i, 6) + 100(F/P, i, 2)] [(P/F, i, 2)] (i) C. [100(F/A, i, 3) + 100(P/A, i, 2)] D. [100(P/A, i, 6) -100(P/F, i, 4)] [(F/P, i, 4)]Explanation / Answer
1. To solvew this question,
we have to make use of uniform gradient series,
which is of the form (P/G,i%,n)
100 = 50*(P/A,i,5)+10(P/G,i,5)+50(P/F,i,5)
on rearranging)
D) (ANSWER)
2. D (ANSWER)