Calculating Annuity Cash Flows.
If you put up $20,000 today in exchange for a 8 percent, 12-year annuity, What will the annual cash flow be?
Calculating Annuity Values.
Your company will generate $50,000 in cash flow each year for the next nine years from a new information database. The computer system needed to set up the database costs $300,000. If you can borrow the money to buy the computer system at 8 percent annual interest, can you afford the new system?