ENGIN 120 Midterm: e120-su2009-mt1-Adler-exam
Document Summary
If you need more space to show major computations you performed to obtain your answer for a particular problem, use the back of the preceding page. Present your work in an organized and neat fashion: good luck! You as a financial manager of a corporation find two investment options for the company. Both investments require an immediate payment of ,000,000. However, the payment amount in odd years is ,000 whereas the payment amount in even years is ,000 (i. e. , ,000 on jan 01, 2010; ,000 on jan 01, 2011; ,000 on jan 01, 2012; etc). Suppose a bank offers a loan of ,000 with the following conditions: monthly payments of ,000, starting six months from now. For each of the following statements, determine whether it is true or false. 1 flow is bigger than the present value of the second cash flow. b.
