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! Required information The Pedernales Electric Cooperative estimates that the present worth now of income from an investment in renewable energy sources is $14,000,000. There will be no income in years 1 and 2, but in year 3 income will be $950,000, and thereafter it will increase according to an arithmetic gradient through year 15. What is the required gradient if the interest rate is 15% per year? Solve using facto The required gradient is $ 73000 X

! Required information The Pedernales Electric Cooperative estimates that the present worth now of income from an investment in renewable energy sources is $14,000,000. There will be no income in years 1 and 2, but in year 3 income will be $950,000, and thereafter it will increase according to an arithmetic gradient through year 15. What is the required gradient if the interest rate is 15% per year? Solve using facto The required gradient is $ 73000 X

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter19: The Basic Tools Of Finance
Section: Chapter Questions
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! Required information The Pedernales Electric Cooperative estimates that the present worth now of income from an investment in renewable energy sources is $14,000,000. There will be no income in years 1 and 2, but in year 3 income will be $950,000, and thereafter it will increase according to an arithmetic gradient through year 15. What is the required gradient if the interest rate is 15% per year? Solve using facto The required gradient is $ 73000 X
Transcribed Image Text:! Required information The Pedernales Electric Cooperative estimates that the present worth now of income from an investment in renewable energy sources is $14,000,000. There will be no income in years 1 and 2, but in year 3 income will be $950,000, and thereafter it will increase according to an arithmetic gradient through year 15. What is the required gradient if the interest rate is 15% per year? Solve using facto The required gradient is $ 73000 X
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