We can solve the sum of an Arithmetic Progression equation to calculate the annual increase in CF:
d = to the annual increase in previous year's CF to bring the final CF to 450000 in year 10
So the CF should increase by 40000 every year:
Year | CF |
1 | 90000 |
2 | 90000+40000 = 130000 |
3 | 130000 +10000 = 170000 |
4 | 170000 + 40000 = 210000 |
5 | 210000 + 40000 = 250000 |
6 | 250000 + 40000 = 290000 |
7 | 290000 + 40000 = 330000 |
8 | 330000 + 40000 = 370000 |
9 | 370000 + 40000 = 410000 |
10 | 410000 + 40000 = 450000 |
CF Diagram is as follows:
Arithmetic gradient is equal to the annual increase of 40000
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