3. Using an interest rate of 6% per interest period as well as a series of cash flows as presented in the diagram in figure 1, estimate the present worth equivalent. What is the worth of the series at t= 8. Series of cash flows $400 $300 $200 $200 0 1 2 $300 3 4

3. Using an interest rate of 6% per interest period as well as a series of cash flows as presented in the diagram in figure 1, estimate the present worth equivalent. What is the worth of the series at t= 8. Series of cash flows $400 $300 $200 $200 0 1 2 $300 3 4

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3. Using an interest rate of 6% per interest period as well as a series of cash flows as presented
in the diagram in figure 1, estimate the present worth equivalent. What is the worth of the
series at t= 8.
Series of cash flows
$400
$300
$200
$200
1
2 $300 3
4 5
6 7

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