answer q3&4 and show me the work 1. Two cash flows...
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answer q3&4 and show me the work
1. Two cash flows A 4and B are shown below. Year Cash Flow A Cash Flow B 0 700 0 1 0 40 2 300 0 0 4 0 6Q 5 900 a) Draw timelines depicting these two cash flows 2 b) Determine the value of Q that will make the two cash flows equivalent at i = 4% 3 2. A savings bank offered you 6% nominal interest compounded every 2 months. You deposited $4,000. a) How much money will you get back after 5 years? 3 b) What is the effective interest rate? 2 3. Your beginning salary is $60,000.00. Assume your salary increases by 5% per year. You deposit 10% of your salary at the end of each year for 3 years in a savings account that carns 6% interest annually. How much money will you have in the savings account at the end of 4 years? 5 4. You purchased an equipment at a cost of $30,000. After 8 years of service life it can be sold for $10,000. The equipment will provide an uniform annual benefit A. a) Draw a cash flow diagram on a timeline for this transaction. 2 b) Determine the value of A that will justify the purchase of this equipment at i-5%
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