For these problems, show the cash flow diagram and cash flow notation. Show transcribed image text 1

For these problems, show the cash flow diagram and cash flow notation. Show transcribed image text 10) Your machine operator is becoming more productive, and generates additional profit each year. You expect to receive $25,000 in profit at the end of this year, but this will increase 6% a year for the next 15 years. If you have a 13% annual interest rate on your investments (compounded annually), what is the Present Value of the profits over the next 15 years? answer________________ 11) What is the future value of an investment which compounds annually at 8% and starts at $1 ,000/year and grows by 10% per year for 20 years (starting with the second year)? answer______________________ 12) What is the Present Value of a $12,000 inflow 2 years from now, and a $40,000 inflow 6 years from now and a $30,000 outflow 4 years from now. Assume an interest rate of 6% for years 1 and 2, 8% for years 3 and 4 and 10% for years 5 and 6. Assume annual compounding. answer_____________ also show the cash flow diagram. Assume that you have the following cash flows: 0:-$100 1: $0 2: $100 3: $200 4: $300 What is the Annual Equivalent (A) of this series of Cash Flows for time periods (0, 1, 2, 3, 4) i=6%. answer

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