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Net CF in advance formula is? and delayed formula?
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okay 0-4 , AF of 4th year and plus 1 for year 0
hw do we do delayed?
You must watch our lectures and work through our notes.
An example would beAn annuity of $3000 per year for eight years starts at the end of the third year and finishes at the end of the tenth year.
Required
What is the present value of the annuity if the discount rate is 6%? (Give your answer to the nearest $.)So take the 10 year annuity and remove the delays
That means the same amount for 8 years starting in year 3So if you think, take the whole 10 years at 6% is 7.360 – then take off the first two years of 1.833 = 5,527 * 3000 = 16,581
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