QUESTION 4
For the net cash flow and cumulative cash flows shown, the value of x is nearest:
Year
Net Cash Flow, $
CCF, $
1
+13,000
+13,000
2
-29,000
-16,000
3
-25,000
-41,000
4
+30,000
-11000
5
+x
$ -8,000
$-16,000
$16,000
$41,000
QUESTION 5
Five years ago, an alumnus of a university donated $55,996.8 to establish a permanent endowment for scholarships. The first scholarships were awarded 1 year
after the contribution. If the amount awarded each year, that is, the interest on the endowment, is $4,017.55, the rate of return earned on the fund is closest to