Payments of $2000 and $1000 were originally scheduled to be paid one year and five years, respectively, from today. They are to be replaced by a $1500 payment due four years from today, and another payment due two years from today. The replacement stream must be economically equivalent to the scheduled stream. What is the unknown payment, if money can earn 7% compounded semiannually?
Statement: If the retired professors of the same institutes are also invited to deliberate on restructuring of the organization, their contribution may be beneficial to the institute. Course of action: a) Management may seek option of the employees before calling retired professors. b) Management should involve experienced people for the systematic restructuring of the organization.