A set of cash flows are given in table below, using the principles of equivalence, determine the value "Y" for an interest rate of 8% compounded annually.
$$\begin{array} { | l | l | l | l | l | l | l | l | }
\hline \text { Year } & 0 & 1 & 2 & 3 & 4 & 5 & 5 - 10 \
\hline \text { Cash flow in \$ } & - 5,000 & 0 & 0 & 0 & - 1,000 & - 1,000 & Y \
\hline
\end{array}$$
A) $1,402.34
B) $1,887.50
C) $1,107.78
D) $2,328.25

Question

A set of cash flows are given in table below, using the principles of equivalence, determine the value "Y" for an interest rate of 8% compounded annually.
$$\begin{array} { | l | l | l | l | l | l | l | l | } 
\hline \text { Year } & 0 & 1 & 2 & 3 & 4 & 5 & 5 - 10 \
\hline \text { Cash flow in \$ } & - 5,000 & 0 & 0 & 0 & - 1,000 & - 1,000 & Y \
\hline
\end{array}$$
A) $1,402.34
B) $1,887.50
C) $1,107.78
D) $2,328.25

Quizplus · Accepted Answer

The Answer is B

A Set of Cash Flows Are Given in Table Below