Determine the interest rate (i) that makes the pairs of cash flows shown economically equivalent. $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 2 3 Years i= ? 4 5 6 $3,500 $2,800 1 2 $2,240 $1,792 $1.4 3 4 Years 5

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Determine the interest rate (1) that makes the pairs of cash flows shown economically equivalent.
0
$3,000 $3,000 $3,000 $3,000 $3,000 $3,000
1
2
3
Years
i = ?
4
5
6
$3,500
$2,800
2
$2,240
3
$1,792
4
Years
ਜ
$1,147
6
$1,434
5
Transcribed Image Text:Determine the interest rate (1) that makes the pairs of cash flows shown economically equivalent. 0 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 1 2 3 Years i = ? 4 5 6 $3,500 $2,800 2 $2,240 3 $1,792 4 Years ਜ $1,147 6 $1,434 5
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