From the given cash flow diagram below, find the future value of the geometric gradient with unknown constant rate f at į= 0.135 compounded annually Note: with solution 5,000 0 1 2 3 9,900 14 15 F=? 21 EOY

Q: For the cash flow revenues shown below, find the value of G that makes the equivalent annual worth…

A: The equivalent annual worth is a concept used in economics and finance to calculate the value of a…

Q: The Interest rate of 18% per year compounded monthly, the effective interest rate semiannually is…

A: Interest rate compounded monthly=18% per yearMonthly interest rate=1812=1.5%

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A: we have interest in two years = 6.75% = 0.0675 we have formula for present value of the annuity as…

Q: 1. Two cash flows A and B are shown below Year Cash Flow A Cash Flow B 500 11 1 4Q 2 300 3 3Q 4 700…

A: Cash Flow Diagram: A cash flow diagram is the graphical representation of positive and negative cash…

Q: Regular payments of $2000 are made at the end of each compounding period. The account earns a rate…

A: The future value of an investment is the returns received by an individual at the given interest…

Q: For the following cashflows, which of the following relationships is correct? Year 0 -$300 Year 1…

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Q: Suppose an investment is project to generate income at the rate of  R(t) = 200, 000 dollars per year…

A: * SOLUTION :-

Q: i = 10% 1 3 4 10 1000 1100 1210 A = ? g= 10% 2,358

A: To find equivalent uniform series we can find the NPV of the cash flow and compute in annual…

Q: How much is there in a savings account in 2 years if we deposit $5,000 now at a rate of 0.25% per…

A: Compound interest formula: A = P (1 + r/n)nt where A-> future value P-> principal value r->…

Q: 135 TAA 900 900 900 10 0 2 4 1200 1500 1800 2100 On the cash flow diagrams above, the x-axis shows…

A: The following formula is used to calculate present value factors (PVF): PVF = 1/(1+i)n

Q: A=? [[i:UU - IU 350 300 2 3 4 5 1 6 7 1 4

A: Gradient formula takes the note of change or gradient in cash flow. The change in net payments from…

Q: Mr. Green had a housing loan amounting to P2,664,676, and it was to be amortized by a group of 30…

A: Here we calculate the increases of payment every year by using  value of Arithmetic gradient by…

Q: At a simple interest rate of 13% per year, determine how long will it take $7,500 to increase to 4…

A: We want want 7500 to become 30,000. Simple interest = 22,500  SI = P× R×T / 100  22500 = 7500 × 13 ×…

Q: A sum of $3999 is due for payment three years from now. If money is worth 9% compounded…

A: Given  "A sum of $3999 is due for payment three years from now" means the cash flow at year 3 is…

Q: For the cash flows shown in the diagram, find the future worth at end of year 10 at interest rate of…

A: Future worth (FW) is the value of a current asset at a future date relying on an assumed rate of…

Cash Flow in Engineering Economics (Interest and Equivalence)

The cash flows of a firm are of two categories such as cash inflows and cash outflows. Cash inflow is the money or income entering a firm during a specific period whereas cash outflow is the money exiting a firm during a specific period in the form of the expenses incurred by the firm. In other words, we can say that cash flow is a series of expenses and credits that run over the project over the lifetime it existed whereas cash inflows are all the income and gains the company earns as a result of its operations.