Find the value of x that makes the equivalent annual worth in years 1 through 7 equal to $600 per year. Use an interest rate of 8% per year. The cash flow in year 0 and year 7 has an unknown value x.

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Reid WolffLv2

18 Jun 2019

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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
1-5	8,000,000	1,000,000
6-8	9,000,000	2,000,000

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

amaranthsnake714

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 16^th 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

What is the present worth (that is, the equivalent value of the cash flows at year 0) of the cash flows in the table below? Use an interest rate of 6% compounded annually. Year 1 2 3 4 5 6-20 Cash flow 6,000 5,000 4,000 3,000 2,000 10,000 $85,496 $89,263 $89,916 $91,611