Determine the present worth of a geometric gradient series with a cash flow of $50,000 in year 1 and increases of 6% each year through year 8. The in terest rate is 10% per year. a. $120,573 b. $220,573 c. $520,573 d. $420,573 e. $320,573

Determine the present worth of a geometric gradient series with a cash flow of $50,000 in year 1 and increases of 6% each year through year 8. The in terest rate is 10% per year. a. $120,573 b. $220,573 c. $520,573 d. $420,573 e. $320,573

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

Determine the present worth of a geometric gradient series with a cash flow of $50,000 in year 1 and increases of 6% each year through year 8. The in terest rate is 10% per year.

a. $120,573

b. $220,573

c. $520,573

d. $420,573

e. $320,573

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