1.27 Construct a cash flow diagram to find the present worth in year 0 of a $400 expenditure in year 3, a $900 receipt in year 4, and $100 expenses in each of years 5 and 6 at an interest rate of 15% per year.

1.27 Construct a cash flow diagram to find the present worth in year 0 of a $400 expenditure in year 3, a $900 receipt in year 4, and $100 expenses in each of years 5 and 6 at an interest rate of 15% per year.

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

1.27
8% per year.
Construct a cash flow diagram to find
the present worth in year 0 of a $400
expenditure in year 3, a $900 receipt in
year 4, and $100 expenses in each of
years 5 and 6 at an interest rate of 15%
per year.

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