Determine the present worth of the following cash flows if the interest rate is 4% per year: Year End Cash Flow ($) 0 1 2 3 4 - $11,000 - $23,000 $38,000 $50,000 - $2,000 Discrete Compounding; i = 4% Single Payment Uniform Series Compound Compound Amount Present Amount Factor Worth Factor Factor Present Worth Factor Sinking Fund Capital Recovery Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P N F/P P/F F/A P/A A/F A/P 1 1.0400 0.9615 1.0000 0.9615 1.0000 1.0400 2 1.0816 0.9246 2.0400 1.8861 0.4902 0.5302 3 1.1249 0.8890 3.1216 2.7751 0.3203 0.3603 4 1.1699 0.8548 4.2465 3.6299 0.2355 0.2755 5 1.2167 0.8219 5.4163 4.4518 0.1846 0.2246 6 1.2653 0.7903 6.6330 5.2421 0.1508 0.1908 7 1.3159 0.7599 7.8983 6.0021 0.1266 0.1666 8 1.3686 0.7307 9.2142 6.7327 0.1085 0.1485 9 1.4233 0.7026 10.5828 7.4353 0.0945 0.1345 10 1.4802 0.6756 12.0061 8.1109 0.0833 0.1233 11 1.5395 0.6496 13.4864 8.7605 0.0741 0.1141 12 1.6010 0.6246 15.0258 9.3851 0.0666 0.1066 13 1.6651 0.6006 16.6268 9.9856 0.0601 0.1001 14 1.7317 0.5775 18.2919 10.5631 0.0547 0.0947 15 1.8009 0.5553 20.0236 11.1184 0.0499 0.0899 676222222233245 16 1.8730 0.5339 21.8245 11.6523 0.0458 0.0858 17 1.9479 0.5134 23.6975 12.1657 0.0422 0.0822 18 2.0258 0.4936 25.6454 12.6593 0.0390 0.0790 19 2.1068 0.4746 27.6712 13.1339 0.0361 0.0761 20 2.1911 0.4564 29.7781 13.5903 0.0336 0.0736 21 2.2788 0.4388 31.9692 14.0292 0.0313 0.0713 2.3699 0.4220 34.2480 14.4511 0.0292 0.0692 2.4647 0.4057 36.6179 14.8568 0.0273 0.0673 2.5633 0.3901 39.0826 15.2470 0.0256 0.0656 2.6658 0.3751 41.6459 15.6221 0.0240 0.0640 30 3.2434 0.3083 56.0849 17.2920 0.0178 0.0578 3.9461 0.2534 73.6522 18.6646 0.0136 0.0536 40 4.8010 0.2083 95.0255 19.7928 0.0105 0.0505 5.8412 0.1712 121.0294 20.7200 0.0083 0.0483 50 7.1067 0.1407 152.6671 21.4822 0.0066 0.0466
Determine the present worth of the following cash flows if the interest rate is 4% per year: Year End Cash Flow ($) 0 1 2 3 4 - $11,000 - $23,000 $38,000 $50,000 - $2,000 Discrete Compounding; i = 4% Single Payment Uniform Series Compound Compound Amount Present Amount Factor Worth Factor Factor Present Worth Factor Sinking Fund Capital Recovery Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P N F/P P/F F/A P/A A/F A/P 1 1.0400 0.9615 1.0000 0.9615 1.0000 1.0400 2 1.0816 0.9246 2.0400 1.8861 0.4902 0.5302 3 1.1249 0.8890 3.1216 2.7751 0.3203 0.3603 4 1.1699 0.8548 4.2465 3.6299 0.2355 0.2755 5 1.2167 0.8219 5.4163 4.4518 0.1846 0.2246 6 1.2653 0.7903 6.6330 5.2421 0.1508 0.1908 7 1.3159 0.7599 7.8983 6.0021 0.1266 0.1666 8 1.3686 0.7307 9.2142 6.7327 0.1085 0.1485 9 1.4233 0.7026 10.5828 7.4353 0.0945 0.1345 10 1.4802 0.6756 12.0061 8.1109 0.0833 0.1233 11 1.5395 0.6496 13.4864 8.7605 0.0741 0.1141 12 1.6010 0.6246 15.0258 9.3851 0.0666 0.1066 13 1.6651 0.6006 16.6268 9.9856 0.0601 0.1001 14 1.7317 0.5775 18.2919 10.5631 0.0547 0.0947 15 1.8009 0.5553 20.0236 11.1184 0.0499 0.0899 676222222233245 16 1.8730 0.5339 21.8245 11.6523 0.0458 0.0858 17 1.9479 0.5134 23.6975 12.1657 0.0422 0.0822 18 2.0258 0.4936 25.6454 12.6593 0.0390 0.0790 19 2.1068 0.4746 27.6712 13.1339 0.0361 0.0761 20 2.1911 0.4564 29.7781 13.5903 0.0336 0.0736 21 2.2788 0.4388 31.9692 14.0292 0.0313 0.0713 2.3699 0.4220 34.2480 14.4511 0.0292 0.0692 2.4647 0.4057 36.6179 14.8568 0.0273 0.0673 2.5633 0.3901 39.0826 15.2470 0.0256 0.0656 2.6658 0.3751 41.6459 15.6221 0.0240 0.0640 30 3.2434 0.3083 56.0849 17.2920 0.0178 0.0578 3.9461 0.2534 73.6522 18.6646 0.0136 0.0536 40 4.8010 0.2083 95.0255 19.7928 0.0105 0.0505 5.8412 0.1712 121.0294 20.7200 0.0083 0.0483 50 7.1067 0.1407 152.6671 21.4822 0.0066 0.0466
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Determine the present worth of the following cash flows if the interest rate is 4% per year:
Transcribed Image Text:Determine the present worth of the following cash flows if the interest rate is 4% per year:
Year End
Cash Flow ($)
0
1
2
3
4
- $11,000
- $23,000
$38,000
$50,000
- $2,000
Transcribed Image Text:Discrete Compounding; i = 4%
Single Payment
Uniform Series
Compound
Compound
Amount
Present
Amount
Factor
Worth Factor
Factor
Present
Worth Factor
Sinking Fund
Capital
Recovery
Factor
Factor
To Find F
To Find P
To Find F
To Find P
To Find A
To Find A
Given P
Given F
Given A
Given A
Given F
Given P
N
F/P
P/F
F/A
P/A
A/F
A/P
1
1.0400
0.9615
1.0000
0.9615
1.0000
1.0400
2
1.0816
0.9246
2.0400
1.8861
0.4902
0.5302
3
1.1249
0.8890
3.1216
2.7751
0.3203
0.3603
4
1.1699
0.8548
4.2465
3.6299
0.2355
0.2755
5
1.2167
0.8219
5.4163
4.4518
0.1846
0.2246
6
1.2653
0.7903
6.6330
5.2421
0.1508
0.1908
7
1.3159
0.7599
7.8983
6.0021
0.1266
0.1666
8
1.3686
0.7307
9.2142
6.7327
0.1085
0.1485
9
1.4233
0.7026
10.5828
7.4353
0.0945
0.1345
10
1.4802
0.6756
12.0061
8.1109
0.0833
0.1233
11
1.5395
0.6496
13.4864
8.7605
0.0741
0.1141
12
1.6010
0.6246
15.0258
9.3851
0.0666
0.1066
13
1.6651
0.6006
16.6268
9.9856
0.0601
0.1001
14
1.7317
0.5775
18.2919
10.5631
0.0547
0.0947
15
1.8009
0.5553
20.0236
11.1184
0.0499
0.0899
676222222233245
16
1.8730
0.5339
21.8245
11.6523
0.0458
0.0858
17
1.9479
0.5134
23.6975
12.1657
0.0422
0.0822
18
2.0258
0.4936
25.6454
12.6593
0.0390
0.0790
19
2.1068
0.4746
27.6712
13.1339
0.0361
0.0761
20
2.1911
0.4564
29.7781
13.5903
0.0336
0.0736
21
2.2788
0.4388
31.9692
14.0292
0.0313
0.0713
2.3699
0.4220
34.2480
14.4511
0.0292
0.0692
2.4647
0.4057
36.6179
14.8568
0.0273
0.0673
2.5633
0.3901
39.0826
15.2470
0.0256
0.0656
2.6658
0.3751
41.6459
15.6221
0.0240
0.0640
30
3.2434
0.3083
56.0849
17.2920
0.0178
0.0578
3.9461
0.2534
73.6522
18.6646
0.0136
0.0536
40
4.8010
0.2083
95.0255
19.7928
0.0105
0.0505
5.8412
0.1712
121.0294
20.7200
0.0083
0.0483
50
7.1067
0.1407
152.6671
21.4822
0.0066
0.0466
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 1 steps
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education