Question

Write the expression for the cash flow.

7) (25 points) First draw a cash flow diagram for the cash flow series shown below. Then write an expression (e.g., P 500(P/A 5%, 3)+100(P/G 5%, 3) + ...) for the present worth of the following cash flow series. You must use at least one uniform series factor, one arithmetic gradient series factor, and one geometric gradient series factor. i=5% per period. No calculations are needed. EOY Cash Flow 4 5,00025,000 15,000 13,500 12,000 10,500 9,000 5 0 1 2 3 7 10 -30,000 10,000 11,500 13,225 a) (5 points) Draw the cash flow diagram for the above cash flow series. b) (20 points) Write down the expression for the present worth of the above cash flow series.

Answer 1

The expression is as below ,since there are non uniform payments ,P/G is used.

- 30000 + 10000 ( P/G 5% ,1) + 11500 ( P/G 5% ,2 ) + 13225 ( P/G 5% ,3) + 5000 ( P/G 5% ,4) -25000 ( P/G 5% ,5) +15000 ( P/G 5% ,6) + 13500 ( P/G 5% ,7) + 12000 ( P/G 5% ,8) + 10500 ( P/G 5% ,9)+ 9000 ( P/G 5% ,10)