Question

1) The costs associated with a particular process are expected to be $6,000 per year for five years, beginning three years from now. At an interest rate of 10% per year, the present worth of these costs is closest to: Pefon x (P/s, omnis) * (Pk op 3) $17,088 b. $18,796 c. $22,745 d. $29.210 > 6093 x 3.29 x 0.3s 1200 2) For the cash flow in the previous example, the future worth in year eight at an interest rate of 10% per year is closest to: Gooox CV AF (opisngs) 336631 $36,631 b. $47,310 c. $56,923 d. $68,615 - (noo (F/A, 10%,x) = fooxfoto 3 For the cash flow in Example 13 ($6,000 for 5 years), the equivalent uniform annual worth. A, in years one through eight at i = 10% per year is closest to: a. $2.875 b. $3,202 c. $3,522 d. $4.262
solve three. show your work

Answer 1

Solution 1:

Present worth = $6,000 * Cumulative PV factor at 10% for 3 to 7 periods

= $6,000 * 3.13288 = $18,796

Hence option b is correct.

Solution 2:

Future value = $6,000 * Cumulative FV factor at 10% for 5 periods

= $6,000 * 6.1051 = $36,631.

Hence option A is correct

Solution 3:

Equivalent uniform annual worth = $18,796 /. Cumulative PV factor at 10% for 8 periods

= $18,796 / 5.33493 = $3,522

Hence option c is correct.