Homework Answers
Lump-sum deposit at 2nd year and 4th year (outflow)
From the 4th year (second deposit) he can make 5 annual withdrawals of $100 (per year inflow)
So withdrawals starts from 4th year and ends at 8th year
At the end of 8th year there will be additional withdrawal of $500 (inflow)
The cash flow diagram is
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draw cash Flow Diagram and provide equation
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