Find the value of x that makes the equivalent annual worth in years 1 through 7 equal to $700 per year. Use an interest rate of 10% per year. The cash flows in year 0 and year 7 has an unknown value x, and 1 through 6 has an annual worth of $700. The value of x is determined to be $ 3408x

Find the value of x that makes the equivalent annual worth in years 1 through 7 equal to $700 per year. Use an interest rate of 10% per year. The cash flows in year 0 and year 7 has an unknown value x, and 1 through 6 has an annual worth of $700. The value of x is determined to be $ 3408x

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Problem 1QTC

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Question

Find the value of x that makes the
equivalent annual worth in years 1
through 7 equal to $700 per year. Use an
interest rate of 10% per year.
The cash flows in year 0 and year 7 has
an unknown value x, and 1 through 6 has
an annual worth of $700.
The value of x is determined to be $
3408 x

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