At i = 10% per year, find the presentworth (PT) of the following cash follow0$3001 2 3A=$5004$7005 6 7 8 9

Answered: At i = 10% per year, find the present…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

At i = 10% per year, find the present
worth (PT) of the following cash follow
0
$300
1 2 3
A=$500
4
$700
5 6 7 8 9

Expert Solution

Step 1

The present worth of a cash inflow or outflow refers to its current value in accordance with its future worth based on a certain rate of interest.
A cash flow diagram represents the direction of the cash flow in a given year, i.e., a cash inflow or cash outflow. A cash inflow is depicted above and a cash outflow is depicted below the horizontal line in the cash flow diagram.

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions