Answered: Cash flow, $ Year O 1 2 3 The value of…

Cash flow, $ Year O 1 2 3 The value of G is $ 200 200 + G 200+ 2G Year 4 5 6 7 Cash flow, $ 200+ 3G 200+ 4G 200+5G 200+6G

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

For the cash flow revenues shown below, find the value of G that makes the equivalent annual worth in years 1 through 7 equal to $500. The interest rate is 9% per year.

Year
0
1
2
13
Cash flow, $
200
200 + G
200 + 2G
The value of G is $
Year
4
5
6
7
Cash flow, $
200 + 3G
200+ 4G
200 + 5G
200 + 6G

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