Calculate the annual equivalent payments

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Reference no: EM131013198

Please Calculate the annual equivalent payments (end of the year, 1 to 4) for the investment over the 4 year life with nominal 15% interest rate compounded annually. With 1500 dollars investment at present time, income of 600, 500, 400, and 300 dollars in the end of first, second, third, and fourth year plus resale value of 1200 dollars in the end of fourth year.

C=1,500 I1=600 I2=500 I3=400 I4=300 L=$1,200

C: Cost, I: Income, L: Salvage Value

Please be careful about the signs. Costs have negative but income and Salvage Value have positive signs.

Reference no: EM131013198

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