Question

Consider the following cash flow: Which of the equations below is correct to computethe present value of the cash flows at 8% interest? \text { A. } P=1000(P / A,

i, 8)-150(P / G, i, 8)+ 150(P / G, i, 4)(P / F, i, 4) B. P= 400(P/A, i, 8) +600(P/A, i, 5) – 150(P/G, i, 4) C. P= 150(P/G, i, 4) + 850(P/A, i,4) + 400(P/A, i, 4)(P/F,i,4)

Fig: 1

Fig: 2

Fig: 3

Fig: 4

Fig: 5

Fig: 6

Fig: 7

Fig: 8

Fig: 9