1. Suppose that you can buy a phone for PHP8,000 down payment with 4,000 for each of the next two years or pay PHP15,500 cash today. Given an interest rate of 8%, which is a cheaper alternative?...


1. Suppose that you can buy a phone for PHP8,000 down payment with 4,000 for each of<br>the next two years or pay PHP15,500 cash today. Given an interest rate of 8%, which is<br>a cheaper alternative?<br>Present Value<br>PHP 8,000<br>8,000.00<br>PHP 4,000/(1.081)<br>PHP 4,000/(1.082)<br>3,703.70<br>3,429.36<br>Total PV<br>PHP 15,133.06<br>

Extracted text: 1. Suppose that you can buy a phone for PHP8,000 down payment with 4,000 for each of the next two years or pay PHP15,500 cash today. Given an interest rate of 8%, which is a cheaper alternative? Present Value PHP 8,000 8,000.00 PHP 4,000/(1.081) PHP 4,000/(1.082) 3,703.70 3,429.36 Total PV PHP 15,133.06
5. What is the present value of the following cash flow stream if the interest is 6%?<br>Time<br>Amount<br>Year 1<br>300<br>Year 2<br>400<br>Year 3<br>500<br>

Extracted text: 5. What is the present value of the following cash flow stream if the interest is 6%? Time Amount Year 1 300 Year 2 400 Year 3 500

Jun 10, 2022
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