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Calculate the equivalent series of annual payments (where the payments are made at the end of...

Calculate the equivalent series of annual payments (where the payments are made at the end of the year in each of periods 1 to 4) for an investment with a capital cost of $1,500 and annual cash flows as shown in the table below. The salvage value of the investment at the end of Year 4 is $1,200. The interest rate, compounded annually, is 16%. Please be careful about the signs. Costs have negative signs but income and Salvage Value have positive signs. This is why the capital cost C is a negative number in the table.

C=-$1,500 I=$600 I=$500 I=$400 I=$300 L=$1,200
0 1 2 3 4

C: Cost, I: Income, L: Salvage Value

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