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2 homework Problem 02.033-Calculation of unknown gradient For the cash flow revenues shown below, find the value of G that makes the equivalent annual worth in years 1 through 7 equal to $500. The interest rate is 7% per year. ash f low. S Year ear flow 5+4G 5+G The value of G is $「 < Prey 5 o9Next 盈 HW 1.pdf AHW 1 (1).pdf
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Answer #1

The equivalent annual worth of the cash flow series is

AW= 225+ G(A/G,7%,7) = 225 + G* 2.7304

                                                   =225+2.7304G

or, 225+2.7304G=500

or, G= 100.71= 100 (Ignoring the decimal values)

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