The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is $600,000. If the gradient increase each year, G, is $1500, determine the cash flow in year 1 at an interest rate of 11% per year. The cash flow in year 1 is $

The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is $600,000. If the gradient increase each year, G, is $1500, determine the cash flow in year 1 at an interest rate of 11% per year. The cash flow in year 1 is $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

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.

Question

Problem 02.038 - Calculation of unknown base cash flow
The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is $600,000. If the gradient increase each
year, G, is $1500, determine the cash flow in year 1 at an interest rate of 11% per year.
The cash flow in year 1 is $

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