Consider the following cash flows and interest rates:
End of Year Interest Rate During
Period Cash Flow at End of Period
0
$0
1
10%
$2,000
2
8%
-$3,000
3
12%
$4,000
A. Determine the future worth of this series of cash flows.
B. Determine the present worth of this series of cash flows.
C. Determine a 3-year uniform annual series that is equivalent to the original series.