Consider a uniform series of cash flows. The first cash flow of $10,000 occurs at time 10 and the last cash flow in the series occurs at time 20. If the interest rate is 8% per period, what is the present equivalent (time = 0) of the series of cash flows?
Consider a uniform series of cash flows. The first cash flow of $10,000 occurs at time 10 and the last cash flow in the series occurs at time 20. If the interest rate is 8% per period, what is the present equivalent (time = 0) of the series of cash flows?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
engineering econ
![Consider a uniform series of cash flows. The first
cash flow of $10,000 occurs at time 10 and the last
cash flow in the series occurs at time 20. If the
interest rate is 8% per period, what is the present
equivalent (time = 0) of the series of cash flows?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe1f50f17-8873-45d4-b929-2ec6fdbb3e82%2Faac72831-fc29-4e3a-b8e0-9c822cc892c2%2F8ptght_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider a uniform series of cash flows. The first
cash flow of $10,000 occurs at time 10 and the last
cash flow in the series occurs at time 20. If the
interest rate is 8% per period, what is the present
equivalent (time = 0) of the series of cash flows?
![TABLE C-11 Discrete Compounding; i = 8%
Single Payment
N
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5
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7
8
9
10
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18
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20
21
22
23
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25
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35
40
45
50
60
80
100
∞
Compound Present
Amount
Factor
Worth
Factor
To Find F
Given P
F/P
1.0800
1.1664
1.2597
1.3605
1.4693
1.5869
1.7138
1.8509
1.9990
2.1589
2.3316
2.5182
2.7196
2.9372
3.1722
3.4259
3.7000
3.9960
4.3157
4.6610
5.0338
5.4365
5.8715
6.3412
6.8485
10.0627
14.7853
21.7245
31.9204
46.9016
101.2571
471.9548
2199.7613
a Less than 0.0001.
To Find P
Given F
P/F
0.9259
0.8573
0.7938
0.7350
0.6806
0.6302
0.5835
0.5403
0.5002
0.4632
0.4289
0.3971
0.3677
0.3405
0.3152
0.2919
0.2703
0.2502
0.2317
0.2145
0.1987
0.1839
0.1703
0.1577
0.1460
0.0994
0.0676
0.0460
0.0313
0.0213
0.0099
0.0021
0.0005
Compound
Amount
Factor
To Find F
Given A
F/A
1.0000
2.0800
3.2464
4.5061
5.8666
7.3359
8.9228
10.6366
12.4876
14.4866
16.6455
18.9771
21.4953
24.2149
27.1521
30.3243
33.7502
37.4502
41.4463
45.7620
50.4229
55.4568
60.8933
66.7648
73.1059
113.2832
172.3168
259.0565
386.5056
573.7702
1253.2133
5886.9354
27484.5157
Uniform Series
Present
Worth
Factor
To Find P
Given A
P/A
0.9259
1.7833
2.5771
3.3121
3.9927
4.6229
5.2064
5.7466
6.2469
6.7101
7.1390
7.5361
7.9038
8.2442
8.5595
8.8514
9.1216
9.3719
9.6036
9.8181
10.0168
10.2007
10.3711
10.5288
10.6748
11.2578
11.6546
11.9246
12.1084
12.2335
12.3766
12.4735
12.4943
12.5000
Sinking
Fund
Factor
To Find A
Given F
A/F
1.0000
0.4808
0.3080
0.2219
0.1705
0.1363
0.1121
0.0940
0.0801
0.0690
0.0601
0.0527
0.0465
0.0413
0.0368
0.0330
0.0296
0.0267
0.0241
0.0219
0.0198
0.0180
0.0164
0.0150
0.0137
0.0088
0.0058
0.0039
0.0026
0.0017
0.0008
0.0002
a
Capital
Recovery
Factor
To Find A
Given P
A/P
1.0800
0.5608
0.3880
0.3019
0.2505
0.2163
0.1921
0.1740
0.1601
0.1490
0.1401
0.1327
0.1265
0.1213
0.1168
0.1130
0.1096
0.1067
0.1041
0.1019
0.0998
0.0980
0.0964
0.0950
0.0937
0.0888
0.0858
0.0839
0.0826
0.0817
0.0808
0.0802
0.0800
0.0800
Gradient
Present Worth
Factor
To Find P
Given G
P/G
0.000
0.857
2.445
4.650
7.372
10.523
14.024
17.806
21.808
25.977
30.266
34.634
39.046
43.472
47.886
52.264
56.588
60.843
65.013
69.090
73.063
76.926
80.673
84.300
87.804
103.456
116.092
126.042
133.733
139.593
Uniform Gradient
147.300
153.800
155.611
Gradient
Uniform Series
Factor
To Find A
Given G
A/G
0.0000
0.4808
0.9487
1.4040
1.8465
2.2763
2.6937
3.0985
3.4910
3.8713
4.2395
4.5957
4.9402
5.2731
5.5945
5.9046
6.2037
6.4920
6.7697
7.0369
7.2940
7.5412
7.7786
8.0066
8.2254
9.1897
9.9611
10.5699
11.0447
11.4107
11.9015
12.3301
12.4545
N
3
4
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7
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9
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21
ជនសង ឌឧម្មាទ ទទខ្លះ ខ
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100](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe1f50f17-8873-45d4-b929-2ec6fdbb3e82%2Faac72831-fc29-4e3a-b8e0-9c822cc892c2%2Fa1p8b7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:TABLE C-11 Discrete Compounding; i = 8%
Single Payment
N
12345
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
30
35
40
45
50
60
80
100
∞
Compound Present
Amount
Factor
Worth
Factor
To Find F
Given P
F/P
1.0800
1.1664
1.2597
1.3605
1.4693
1.5869
1.7138
1.8509
1.9990
2.1589
2.3316
2.5182
2.7196
2.9372
3.1722
3.4259
3.7000
3.9960
4.3157
4.6610
5.0338
5.4365
5.8715
6.3412
6.8485
10.0627
14.7853
21.7245
31.9204
46.9016
101.2571
471.9548
2199.7613
a Less than 0.0001.
To Find P
Given F
P/F
0.9259
0.8573
0.7938
0.7350
0.6806
0.6302
0.5835
0.5403
0.5002
0.4632
0.4289
0.3971
0.3677
0.3405
0.3152
0.2919
0.2703
0.2502
0.2317
0.2145
0.1987
0.1839
0.1703
0.1577
0.1460
0.0994
0.0676
0.0460
0.0313
0.0213
0.0099
0.0021
0.0005
Compound
Amount
Factor
To Find F
Given A
F/A
1.0000
2.0800
3.2464
4.5061
5.8666
7.3359
8.9228
10.6366
12.4876
14.4866
16.6455
18.9771
21.4953
24.2149
27.1521
30.3243
33.7502
37.4502
41.4463
45.7620
50.4229
55.4568
60.8933
66.7648
73.1059
113.2832
172.3168
259.0565
386.5056
573.7702
1253.2133
5886.9354
27484.5157
Uniform Series
Present
Worth
Factor
To Find P
Given A
P/A
0.9259
1.7833
2.5771
3.3121
3.9927
4.6229
5.2064
5.7466
6.2469
6.7101
7.1390
7.5361
7.9038
8.2442
8.5595
8.8514
9.1216
9.3719
9.6036
9.8181
10.0168
10.2007
10.3711
10.5288
10.6748
11.2578
11.6546
11.9246
12.1084
12.2335
12.3766
12.4735
12.4943
12.5000
Sinking
Fund
Factor
To Find A
Given F
A/F
1.0000
0.4808
0.3080
0.2219
0.1705
0.1363
0.1121
0.0940
0.0801
0.0690
0.0601
0.0527
0.0465
0.0413
0.0368
0.0330
0.0296
0.0267
0.0241
0.0219
0.0198
0.0180
0.0164
0.0150
0.0137
0.0088
0.0058
0.0039
0.0026
0.0017
0.0008
0.0002
a
Capital
Recovery
Factor
To Find A
Given P
A/P
1.0800
0.5608
0.3880
0.3019
0.2505
0.2163
0.1921
0.1740
0.1601
0.1490
0.1401
0.1327
0.1265
0.1213
0.1168
0.1130
0.1096
0.1067
0.1041
0.1019
0.0998
0.0980
0.0964
0.0950
0.0937
0.0888
0.0858
0.0839
0.0826
0.0817
0.0808
0.0802
0.0800
0.0800
Gradient
Present Worth
Factor
To Find P
Given G
P/G
0.000
0.857
2.445
4.650
7.372
10.523
14.024
17.806
21.808
25.977
30.266
34.634
39.046
43.472
47.886
52.264
56.588
60.843
65.013
69.090
73.063
76.926
80.673
84.300
87.804
103.456
116.092
126.042
133.733
139.593
Uniform Gradient
147.300
153.800
155.611
Gradient
Uniform Series
Factor
To Find A
Given G
A/G
0.0000
0.4808
0.9487
1.4040
1.8465
2.2763
2.6937
3.0985
3.4910
3.8713
4.2395
4.5957
4.9402
5.2731
5.5945
5.9046
6.2037
6.4920
6.7697
7.0369
7.2940
7.5412
7.7786
8.0066
8.2254
9.1897
9.9611
10.5699
11.0447
11.4107
11.9015
12.3301
12.4545
N
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
ជនសង ឌឧម្មាទ ទទខ្លះ ខ
22
23
24
25
30
35
40
45
50
60
80
100
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