Suppose that we have cash flows as follows.End of Year Cash Flows ($)18,0007,0006,0005,00022344Draw cash flow diagram. Calculate the present equivalent at i-15% per year, using arithmeticgradient interest factors.

Present value (PV) is the current worth of a future sum of money, accounting for the time value of…

Suppose that we have cash flows as follows. End of Year Cash Flows ($) 1 8,000 7,000 6,000 5,000 2 3 4 Draw cash flow diagram. Calculate the present equivalent at i = 15% per year, using arithmetic gradient interest factors.

Suppose that we have cash flows as follows. End of Year Cash Flows ($) 1 8,000 7,000 6,000 5,000 2 3 4 Draw cash flow diagram. Calculate the present equivalent at i = 15% per year, using arithmetic gradient interest factors.

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

Suppose that we have cash flows as follows.
End of Year Cash Flows ($)
1
8,000
7,000
6,000
5,000
2
234
4
Draw cash flow diagram. Calculate the present equivalent at i-15% per year, using arithmetic
gradient interest factors.

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