Question

1 PLS We have a positive linear gradient as shown in the following graph. Under these conditions what would be the equation t

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Answer #1

Let us first develop the equation of PW at t=1

PW1=G*(P/G,5%,3)

Let us find the PW of cash flows at t=0

PW2=G*(P/G,5%,3)*(P/F,5%,1)

EAW=A=G*(P/G,5%,3)*(P/F,5%,1)*(A/P,5%,4)

Correct option is

A=G*(P/G,5%,3)*(P/F,5%,1)*(A/P,5%,4)

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