8. A cash flow sequence isdescribed by 1000 in year 1 increasing by $5

QUESTION

8. A cash flow sequence isdescribed by 1000 in year 1 increasing by $50 per year . Thesequence extends through year 11. The interest rate is 8% per yearThe annual worth through year 11 is nearest to 541116912121351
Year Cashflows ($) PV factor at 8% Present Values ofCashflows($) 1 1000.00 0.926 926.000 2 1050.00 0.857 899.850 3 1100.00 0.794 873.400 4 1150.00 0.735 845.250 5 1200.00 0.681 817.200 6 1250.00 0.630 787.500 7 1300.00 0.583 757.900 8 1350.00 0.540 729.000 9 1400.00 0.500 700.000 10 1450.00 0.463

.350 11 1500.00 0.429 643.500 Present Value of Cashflows 8650.950 Annual Cashflows in the year 11 is $1,500 and whose presentvalue of cashflows is $643.500. The total present value cashflows $8,650.950

ANSWER:

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