A machine has 20 years of life. The income = %3D 15000 for the first year decrease by 250 each year (Uniform Gradient). Find the present worth for these payments for 40 years life using an interest rate of 5% per .year

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A machine has 20 years
of life. The income
15000 for the first year
decrease by 250 each
year (Uniform Gradient).
Find the present worth
for these payments for
40 years life using an
interest rate of 5% per
%D
.year
Transcribed Image Text:A machine has 20 years of life. The income 15000 for the first year decrease by 250 each year (Uniform Gradient). Find the present worth for these payments for 40 years life using an interest rate of 5% per %D .year
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