Question

3) (20 points) EOY 0 Net Cash Flow $10,000 incroa+$1,000 ng mac+$1,350 eful li+$1,700 +$2,050 500 a+$1,000 p+$2,000 +$2,200 +$2,420 1 2 3 4 5 Ole Ope 6 7 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 = (PIA 5%,)+ + (P/G 5%,)+ ( P/F 5%,, (P/A1 D}_5%, 5) 5%,

Answer 1

Solutron Gen valus of Eoy and Netcagh Floco an interestrade of S per ear Presentworth for Compounde d anualy Calalations NetcathPlous ( puf@ s preentcoth Eoy o000 O.95 ay.48979 1330 o.8G 1468 539) 3 oak 0-82 TG86.5400 20S0 4 O78 183. $2616 49.43099 2000 S63 4989 2200 637. 7812 2420 8o 9. 34188 Total Bo9.34 Cafpx Prelentewerth is

For reference the formula for calculations is shown n the following table given below:

	A	B	C	D
1	EOY	Net cash Flow ($)	PVF @5%	Present Worth
2	0	-10000	1	=+B2*C2
3	1	1000	=PV(5%,1,0,-1,)	=+B3*C3
4	2	1350	=PV(5%,2,0,-1,)	=+B4*C4
5	3	1700	=PV(5%,3,0,-1,)	=+B5*C5
6	4	2050	=PV(5%,4,0,-1,)	=+B6*C6
7	5	1000	=PV(5%,5,0,-1,)	=+B7*C7
8	6	2000	=PV(5%,6,0,-1,)	=+B8*C8
9	7	2200	=PV(5%,7,0,-1,)	=+B9*C9
10	8	2420	=PV(5%,8,0,-1,)	=+B10*C10
11				=SUM(D2:D10)