Find the value of the unknown quantity, Po that establishes equivalence in the cash-flow diagram below. Suppose į = 12% per year. Use an annuity factor, a uniform gradient factor and geometric gradient series in your solution. $1,400 f=10% $1,100 $900 S800 $500 1 2 3 4 5 6 7 8 9 10 11 12 13 EOY

Find the value of the unknown quantity, Po that establishes equivalence in the cash-flow diagram below. Suppose į = 12% per year. Use an annuity factor, a uniform gradient factor and geometric gradient series in your solution. $1,400 f=10% $1,100 $900 S800 $500 1 2 3 4 5 6 7 8 9 10 11 12 13 EOY

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

Find the value of the unknown quantity, Po that establishes equivalence in the
cash-flow diagram below. Suppose į = 12% per year. Use an annuity factor, a
uniform gradient factor and geometric gradient series in your solution.
$1,400
f=10%
$1,100
$900
$800
$500
1 2 3
4 5 6 7 8 9 10
11 12
13
EOY
Po=?

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follow instructions. dont forget to do the diagram