Consider the following cash flow profile: Suppose the positive-valued cash flows are now replaced by a geometric

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Consider the following cash flow profile:

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Suppose the positive-valued cash flows are now replaced by a geometric series. If the cash flow at end-of-year 1 is $10,000, what geometric rate is required for the cash flow profiles to be equivalent? Interest is at a compounded annual rate of 6 percent.

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Principles Of Engineering Economic Analysis

ISBN: 9781118163832

6th Edition

Authors: John A. White, Kenneth E. Case, David B. Pratt

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