ASSIGNMENT > HW_1_Solutions. University of Michigan IOE 452


HW_1_Solutions.  University of Michigan IOE 452 IOE 452 University of Michigan Assignment I Fall 2017 Suggested Solutions Q1– 1. If there was no interest, that is, r = 0, the present value of the cash flows is given by: PV = $10; 000 (1 + :000)1 + $25; 000 (1 + :000)2 + $15; 000 (1 + :000)3 = $50; 000 In other words, the present value is the sum of the cash flow, or $50; 000. ...[Show More]

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