A structural engineering consulting company is examining its cash flow requirements for the next 6 years. The company expects to spend $18,000 two years from now, $22,000 three years from now, and $8,000 five years from now. What is the present worth of the planned expenditures at an interest rate of 10% per year, compounded semiannually

The total present value of the expenditures= $36,136.7

Explanation:

Giving the following information:

Cash flows:

Cf2= $18,000

Cf3= $22,000

Cf5= $8,000

We need to calculate the present value of the planned expenditures at an interest rate of 10% per year, compounded semiannually.

i= 0.10/2= 0.05

We will use the following formula on each cash flow:

PV= FV/(1+i)^n

Cf2= 18,000/(1.05^4)= $14,808.65

Cf3= 22,000/(1.05^6)= $16,416.74

Cf5= 8,000/(1.05^10)= $4,911.31

The total present value of the expenditures= $36,136.7

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

start by isolating the variable on one side by adding 43w^2 to both sides.   the equation will read:

25w^2+5=0

*subtract 5 from both sides*

25w^2=-5

*divide both sides by 25*

w^2=-1/5

*take the square root of both sides*

w=√(-1/5)

the square root of -1 is i.   the square root of 5 remains √5

the answer is i/√5.

hope this