Question

A cash flow at time zero (now) of $14,551 is equivalent to another cash flow that is an EOY annuity of $2,700 over seven years (starting at year 1). Each of these two cash-flow series is equlvaient to a thied sene which is a uniform gradient series What is the value of G for this third series over the same seven-year ime interval? Assume that the cash flow at the end of year one is zero. Choose the comect answer below O A. $989 O B. $77 O C. $296 O D. $1,450 O E. Not enough information given
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Answer #1

option B is correct, i.e. $779 is the right answer

it will be equals to the values of other two cash flows i.e. $14,551 and $2700 at the end of 7th years. So, the right option is B for this question.

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