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Nel5-17 Calculate the present worth of the following geometric gradient series cash flow: Annual interest Rate =7.07 %, Annual cash flow increases 20% each year, The first year value is $58 and the series is 8 yrs long. Present your answer with 2 decimal place precision.

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Chika Ilonah
Chika IlonahLv10
28 Sep 2019

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Related questions

Given this cash flow sequence on the following table with an interest rate of 10 % per year

Year

Income, $ per year

Expenses, $ per year

0

20,000,000

 Ā 

1-5

8,000,000

1,000,000

6-8

9,000,000

2,000,000

Calculate the present value of the whole cash flow sequence

Calculate the Future worth/value of both series (1-5) and (6-8)

Calculate the annual worth in years 1 to 8 of the following series of incomes and expenses.

Grandpa would like to deposit some money now for his grandson to have available to beginning withdrawing $18,000 per year for four years, starting 5 years from now. If the money earns 7% interest per year, the amount that Grandpa must deposit is closest to:

The number of time periods that should be used with the F/A factor is equal to:

To find the EUAW of a shifted gradient, find A/G.

The number of time periods that should be used with the P/A factor is equal to:

For a uniform annual series, the future worth is always located in the same period as the last A

To avoid errors in counting the number of periods, you should always:

About a uniform annual series, the present worth is always located:

To find the equivalent uniform annual worth of a cash flow that has both A's and F's convert everything to a P and then find the F.

The first cash flow of a uniform graduate will always be located in the first period.

1 Two sets of cash flows are shown in the table below. If these sets are equal at 8% interest rate, determine the unknown value, X.

Year 0 1 2 3 4 5
Cash Flow, Series I $125 $100 $75 $50 $25 $0
Cash Flow, Series II $X $2X $3X $4X $5X $7X

2 A deposit of $10,000 now at a interest rate of 10% per year will accumulate in 20 years to an amount equal to _______________.

A.

$54,600
B.

$61,500
C.

$67,280
D.

$51,900

3 Which of the following relationships between compound interest factors is not correct?

A.

Single Payment Compound Amount Factor and Single Payment Present Worth Factor are reciprocals.
B.

Sinking Fund Factor and Uniform Series Compound Amount Factor are reciprocals.
C.

Capital Recovery Factor and the Sinking Fund Factor are reciprocals.
D.

Capital Recovery Factor and Uniform Series Present Worth Factor are reciprocals.

4 What is the present worth of a series of ten deposits of $200 per year at 6% made at the end of each year?

A.

$1,672
B.

$1,072
C.

$1,272
D.

$1,472

5 Determine the net present worth (NPW) of the following cash flows using an interest rate of 7%.

Year

0

1

2

3

4

5

6

7

8

Cash Flow,$

-12,000

2,000

2,000

2,000

2,000

2,000

2,500

3,000

3,500

A.$2,771.05

B.$2,500
C.$1,500
D.$1,771.05

6 At Kal Tech Manufacturing Inc, the time required to make the first unit of an engineered product is 64.1 minutes. Determine the time required for 16th unit if the learning curve percentage is 90%.

A.

42.1 minutes
B.

29.53 minutes
C.

36.45 minutes
D.

20.89 minutes

7 A sum of $994.62 deposited at time

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