Question

I need expert to solve this step by step solution I have the answer already. Please do not used excel and solve this problem as Engineering economic problem. Thank

3) (20 points) EOY Net Cash Flow -$12,000 +$1,200 +$1,320 +$1,452 +$2,050 +$1,800 +$2,000 +$2,200 +$2,400 For the cash flow profile given above, an expression showing the present worth for an interest rate of 5% per year compounded annually is PW = __+_(P/A1___ 5%, J) +- + _(P/F 5%, a (P|A 5%, ) + (P/G 5%, ___}(P|F 5%,

Answer 1

PW = - 12,000 + 1,200(P/A,10%,5%,3)+ 2,050(P/F,5%,4) + [1,800(P/A,5%,4)+200(P/G,5%,4)](P/F,5%,4)

This is the equation of the present value.

PW = - 12,000 + 1,200 ×(1-(1.1/1.05)³)/(0.05 -0.1) + 2,050/1.05⁴ + [1,800 ×(1 - 1.05^-4)/0.05 + 200×(1.05⁴ - 0.05×4 -1)/(0.05² × 1.05⁴ )] × (1/1.05⁴)

PW = - 12,000 + 1,200 × 2.99535 + 2,050×0.8227 + [1,800 × 3.5459 + 200 × 5.1028 ] × 0.8227

PW = - 12,000 + 3,594.43 + 1,686.54 + [6,382.72 + 1,020.56]×0.8227

PW= - 6,719.03 + 7,403.28 × 0.8227

PW = - 6,719.03 + 6,090.70

PW = - $ 628.33

I have solved it using excel too got the same answer. For your reference attaching the picture. So sorry I have typed the equation. The formula editor is not working so I have typed it.

0 1.05 -12000 -12000 1200 1142.857143 | 1320 1197.278912 1452 1254.292193 12050 1686.540073 1800 1410.3471 | 2000 1492.430793 | 2200 1563.498926 | 2400 1624.414469 -628.340391

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