Print your name: 4. (15 pts) $60 $75 1 0% $45 n=5 $15 $30 0 2...

Question

Question

Print your name: 4. (15 pts) $60 $75 1 0% $45 n=5 $15 $30 0 2 3 4 The PW for this cash flow can be calculated as PW You do no

Answer 1

Answer #1

Answer: PW = 15(P/A,10%,5)+15(P/G,10%,5)

Here the cash flow is in uniform gradient series , that begins from year 1

Here the first year cash flow = 15 = A

Gradient value = 15 =G

This gradient value is the increasing value for every year

According to gradient series the PW formula

PW = A (P/A,i%,n)+G(P/G,i%,n)

PW = 15(P/A,10%,5)+15(P/G,10%,5)

Answer 2

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