Order the answer to: Consider the following cash flow: Year

Order the answer to: Consider the following cash flow:…

Question	Consider the following cash flow: Year Cash Flow 0 -$P 1 +1000 2 +850 3 +700 4 +550 5 +400 6 +400 7 +400 8 +400 Alice was asked to compute the value of P for the cash flow at 8%interest. She wrote three equations: (a) P = 1000(P/A, 8%, 8) -150(P/G, 8%, 8) + 150(P / G, 8%, 4) (P / F, 8%,4) (b) P = 400(P / A, 8%, 8) + 600 (p / A, 8%, 5)’- 150(P / G, 8%, 4) (c) P = 150(P /G, 8%, 4) + 850(P / A, 8%,4) + 400(P / A, 8%, 4)(P / F, 8%,4) Which of the equations is correct?
Subject	business-economics

Question

Consider the following cash flow: Year Cash Flow 0 -$P 1 +1000 2 +850 3 +700 4 +550 5 +400 6 +400 7 +400 8 +400 Alice was asked to compute the value of P for the cash flow at 8%interest. She wrote three equations: (a) P = 1000(P/A, 8%, 8) -150(P/G, 8%, 8) + 150(P / G, 8%, 4) (P / F, 8%,4) (b) P = 400(P / A, 8%, 8) + 600 (p / A, 8%, 5)’- 150(P / G, 8%, 4) (c) P = 150(P /G, 8%, 4) + 850(P / A, 8%,4) + 400(P / A, 8%, 4)(P / F, 8%,4) Which of the equations is correct?

Subject

business-economics

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