Consider a uniform series of cash flows. The first cash flow of $10,000 occurs at time 10 and the last cash flow in the series occurs at time 20. If the interest rate is 8% per period, what is the present equivalent (time = 0) of the series of cash flows?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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engineering econ

Consider a uniform series of cash flows. The first
cash flow of $10,000 occurs at time 10 and the last
cash flow in the series occurs at time 20. If the
interest rate is 8% per period, what is the present
equivalent (time = 0) of the series of cash flows?
Transcribed Image Text:Consider a uniform series of cash flows. The first cash flow of $10,000 occurs at time 10 and the last cash flow in the series occurs at time 20. If the interest rate is 8% per period, what is the present equivalent (time = 0) of the series of cash flows?
TABLE C-11 Discrete Compounding; i = 8%
Single Payment
N
12345
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
30
35
40
45
50
60
80
100
∞
Compound Present
Amount
Factor
Worth
Factor
To Find F
Given P
F/P
1.0800
1.1664
1.2597
1.3605
1.4693
1.5869
1.7138
1.8509
1.9990
2.1589
2.3316
2.5182
2.7196
2.9372
3.1722
3.4259
3.7000
3.9960
4.3157
4.6610
5.0338
5.4365
5.8715
6.3412
6.8485
10.0627
14.7853
21.7245
31.9204
46.9016
101.2571
471.9548
2199.7613
a Less than 0.0001.
To Find P
Given F
P/F
0.9259
0.8573
0.7938
0.7350
0.6806
0.6302
0.5835
0.5403
0.5002
0.4632
0.4289
0.3971
0.3677
0.3405
0.3152
0.2919
0.2703
0.2502
0.2317
0.2145
0.1987
0.1839
0.1703
0.1577
0.1460
0.0994
0.0676
0.0460
0.0313
0.0213
0.0099
0.0021
0.0005
Compound
Amount
Factor
To Find F
Given A
F/A
1.0000
2.0800
3.2464
4.5061
5.8666
7.3359
8.9228
10.6366
12.4876
14.4866
16.6455
18.9771
21.4953
24.2149
27.1521
30.3243
33.7502
37.4502
41.4463
45.7620
50.4229
55.4568
60.8933
66.7648
73.1059
113.2832
172.3168
259.0565
386.5056
573.7702
1253.2133
5886.9354
27484.5157
Uniform Series
Present
Worth
Factor
To Find P
Given A
P/A
0.9259
1.7833
2.5771
3.3121
3.9927
4.6229
5.2064
5.7466
6.2469
6.7101
7.1390
7.5361
7.9038
8.2442
8.5595
8.8514
9.1216
9.3719
9.6036
9.8181
10.0168
10.2007
10.3711
10.5288
10.6748
11.2578
11.6546
11.9246
12.1084
12.2335
12.3766
12.4735
12.4943
12.5000
Sinking
Fund
Factor
To Find A
Given F
A/F
1.0000
0.4808
0.3080
0.2219
0.1705
0.1363
0.1121
0.0940
0.0801
0.0690
0.0601
0.0527
0.0465
0.0413
0.0368
0.0330
0.0296
0.0267
0.0241
0.0219
0.0198
0.0180
0.0164
0.0150
0.0137
0.0088
0.0058
0.0039
0.0026
0.0017
0.0008
0.0002
a
Capital
Recovery
Factor
To Find A
Given P
A/P
1.0800
0.5608
0.3880
0.3019
0.2505
0.2163
0.1921
0.1740
0.1601
0.1490
0.1401
0.1327
0.1265
0.1213
0.1168
0.1130
0.1096
0.1067
0.1041
0.1019
0.0998
0.0980
0.0964
0.0950
0.0937
0.0888
0.0858
0.0839
0.0826
0.0817
0.0808
0.0802
0.0800
0.0800
Gradient
Present Worth
Factor
To Find P
Given G
P/G
0.000
0.857
2.445
4.650
7.372
10.523
14.024
17.806
21.808
25.977
30.266
34.634
39.046
43.472
47.886
52.264
56.588
60.843
65.013
69.090
73.063
76.926
80.673
84.300
87.804
103.456
116.092
126.042
133.733
139.593
Uniform Gradient
147.300
153.800
155.611
Gradient
Uniform Series
Factor
To Find A
Given G
A/G
0.0000
0.4808
0.9487
1.4040
1.8465
2.2763
2.6937
3.0985
3.4910
3.8713
4.2395
4.5957
4.9402
5.2731
5.5945
5.9046
6.2037
6.4920
6.7697
7.0369
7.2940
7.5412
7.7786
8.0066
8.2254
9.1897
9.9611
10.5699
11.0447
11.4107
11.9015
12.3301
12.4545
N
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
ជនសង ឌឧម្មាទ ទទខ្លះ ខ
22
23
24
25
30
35
40
45
50
60
80
100
Transcribed Image Text:TABLE C-11 Discrete Compounding; i = 8% Single Payment N 12345 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 35 40 45 50 60 80 100 ∞ Compound Present Amount Factor Worth Factor To Find F Given P F/P 1.0800 1.1664 1.2597 1.3605 1.4693 1.5869 1.7138 1.8509 1.9990 2.1589 2.3316 2.5182 2.7196 2.9372 3.1722 3.4259 3.7000 3.9960 4.3157 4.6610 5.0338 5.4365 5.8715 6.3412 6.8485 10.0627 14.7853 21.7245 31.9204 46.9016 101.2571 471.9548 2199.7613 a Less than 0.0001. To Find P Given F P/F 0.9259 0.8573 0.7938 0.7350 0.6806 0.6302 0.5835 0.5403 0.5002 0.4632 0.4289 0.3971 0.3677 0.3405 0.3152 0.2919 0.2703 0.2502 0.2317 0.2145 0.1987 0.1839 0.1703 0.1577 0.1460 0.0994 0.0676 0.0460 0.0313 0.0213 0.0099 0.0021 0.0005 Compound Amount Factor To Find F Given A F/A 1.0000 2.0800 3.2464 4.5061 5.8666 7.3359 8.9228 10.6366 12.4876 14.4866 16.6455 18.9771 21.4953 24.2149 27.1521 30.3243 33.7502 37.4502 41.4463 45.7620 50.4229 55.4568 60.8933 66.7648 73.1059 113.2832 172.3168 259.0565 386.5056 573.7702 1253.2133 5886.9354 27484.5157 Uniform Series Present Worth Factor To Find P Given A P/A 0.9259 1.7833 2.5771 3.3121 3.9927 4.6229 5.2064 5.7466 6.2469 6.7101 7.1390 7.5361 7.9038 8.2442 8.5595 8.8514 9.1216 9.3719 9.6036 9.8181 10.0168 10.2007 10.3711 10.5288 10.6748 11.2578 11.6546 11.9246 12.1084 12.2335 12.3766 12.4735 12.4943 12.5000 Sinking Fund Factor To Find A Given F A/F 1.0000 0.4808 0.3080 0.2219 0.1705 0.1363 0.1121 0.0940 0.0801 0.0690 0.0601 0.0527 0.0465 0.0413 0.0368 0.0330 0.0296 0.0267 0.0241 0.0219 0.0198 0.0180 0.0164 0.0150 0.0137 0.0088 0.0058 0.0039 0.0026 0.0017 0.0008 0.0002 a Capital Recovery Factor To Find A Given P A/P 1.0800 0.5608 0.3880 0.3019 0.2505 0.2163 0.1921 0.1740 0.1601 0.1490 0.1401 0.1327 0.1265 0.1213 0.1168 0.1130 0.1096 0.1067 0.1041 0.1019 0.0998 0.0980 0.0964 0.0950 0.0937 0.0888 0.0858 0.0839 0.0826 0.0817 0.0808 0.0802 0.0800 0.0800 Gradient Present Worth Factor To Find P Given G P/G 0.000 0.857 2.445 4.650 7.372 10.523 14.024 17.806 21.808 25.977 30.266 34.634 39.046 43.472 47.886 52.264 56.588 60.843 65.013 69.090 73.063 76.926 80.673 84.300 87.804 103.456 116.092 126.042 133.733 139.593 Uniform Gradient 147.300 153.800 155.611 Gradient Uniform Series Factor To Find A Given G A/G 0.0000 0.4808 0.9487 1.4040 1.8465 2.2763 2.6937 3.0985 3.4910 3.8713 4.2395 4.5957 4.9402 5.2731 5.5945 5.9046 6.2037 6.4920 6.7697 7.0369 7.2940 7.5412 7.7786 8.0066 8.2254 9.1897 9.9611 10.5699 11.0447 11.4107 11.9015 12.3301 12.4545 N 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 ជនសង ឌឧម្មាទ ទទខ្លះ ខ 22 23 24 25 30 35 40 45 50 60 80 100
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