Answered: Determine the present worth of a…

Determine the present worth of a geometric gradient series with a cash flow of $50,000 in year 1 and increases of 6% each year through year 8. The interest rate is 8% 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

Determine the present worth of a geometric gradient
series with a cash flow of $50,000 in year 1 and
increases of 6% each year through year 8. The interest
rate is 8% per year.

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