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6. For the cash flows described, determine the value of G that makes the present worth in year o equal to $14,000. Use the pr
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Answer #1
Let us form the equation to determine G
Present Worth = PVAIF* Annual Cash Flow
0 = PVAIF(10% , 4 year) * ($8000-G)
0=3.1698654*($8000-G)
0 =$25358.92-3.16987G
G =$25358.92/3.16987
G =$8000
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