5- In the following cash flow diagram the value of G = 100 a- True b- False, explain 10,000 500 100 <=? 125 1 2 3 150 4 175 i=6% 5 6 7 8 9 300 10

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A: Interest rate = 5% Cash Flows Year 1 = 5000 Year 2 = 4500 Year 3 = 4000 Year 4 = 3500

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A: Answer; Amount at the end of 3rd year =$3506.112.

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Q: Find G? c. 4 2G $10,00 Find G?

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A:

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A:

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Cash Flow in Engineering Economics (Interest and Equivalence)

The cash flows of a firm are of two categories such as cash inflows and cash outflows. Cash inflow is the money or income entering a firm during a specific period whereas cash outflow is the money exiting a firm during a specific period in the form of the expenses incurred by the firm. In other words, we can say that cash flow is a series of expenses and credits that run over the project over the lifetime it existed whereas cash inflows are all the income and gains the company earns as a result of its operations.