How to calculate CASH FLOWS??? (values currently are incorrect) Problem 4-131 Construct the EOY...
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Finance
How to calculate CASH FLOWS???
(values currently are incorrect)
Problem 4-131 Construct the EOY geometric sequence of cash flows and determine the P. A. and F equivalent values. The rate of increase is 20% per year after the first year, and the interest rate is 25% per year. Rate of increase Interest rate 20% 25% Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. EOY 1 2 3 4 5 6 7 8 9 10 Cash flow $1,000 $1,250 $1,375 $1,495 $1,646 $1,853 $2,153 $2,607 $3,335 $4,585 Present equivalent (P) Annual equivalent (A) Future equivalent (F) $7,094 $1,987 $66,071
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