The following equation describes the conversion of a cash flow into an equivalent equal- payment series with N= 8 years. n represents a specific year. Draw the original cash flow diagram. Assume an interest rate of 5% compounded annually. A=[$200+$100(F/A,,10%,5%, 3) (F/P,5%,4)-$50(P/A,5%,4) (F/P,5%, 5)] (A/F,5%,8) Original Cash Flow=? 0 1 2 3 4 5 6 7 8

The following equation describes the conversion of a cash flow into an equivalent equal- payment series with N= 8 years. n represents a specific year. Draw the original cash flow diagram. Assume an interest rate of 5% compounded annually. A=[$200+$100(F/A,,10%,5%, 3) (F/P,5%,4)-$50(P/A,5%,4) (F/P,5%, 5)] (A/F,5%,8) Original Cash Flow=? 0 1 2 3 4 5 6 7 8

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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