A small company plans to spend 10000 in year 2 and 10000 in, Ask an Expert

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A small company plans to spend $10,000 in year 2 and $10,000 in year 5. At an interest rate of effective 10% per year compounded semi-annually, the equation that represents the equivalent annual worth in years 1 thru 5 is:

(a) A = 10,000 (A/P, 10%, 4) + 10,000 (A/F, 10%, 5)

(b) A = 10,000 (P/F, 5%, 2) (A/P, 5%, 10) + 10,000 (A/F, 5%, 10)

(d) A = 10,000 (F/P, 10%, 1) (A/P, 10%, 5) + 10,000 (A/F, 10%, 5)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92405916

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