Reconsider Parts (a) through (f) of Problem 2. For each true statement, develop a mathematical proof based
Question:
Reconsider Parts (a) through (f) of Problem 2. For each "true" statement, develop a mathematical proof based on the time value of money factor equations from Table 2.6 in Chapter 2.
Data from problem 2
Determine whether each of the following is true or false. In each case, assume \(P\) is located at \(t=0\) and \(F\) is located at \(t=n\), and the \(A\) s are spread uniformly over the planning horizon.
a. \((A \mid P i \%, 1)=(F \mid P i \%, 1)\)
b. \((A \mid P i \%, n)=(F \mid P i \%, n)\); for \(n>1\)
c. \(P(A \mid P i \%, n)=P(F \mid P i \%, n)(A \mid F i \%, n)\)
d. \(F(A \mid F i \%, n)=F(P \mid F i \%, n)(A \mid P i \%, n)\)
e. \(P(A \mid P i \%, n)=P(A \mid P i \%, n-3)+P(A \mid P i \%, 3)\); for \(n>3\)
f. \(P(A \mid P i \%, n)=P(A \mid P i \%, n-3)(A \mid P i \%, 3)\); for \(n>3\)
Step by Step Answer:
Principles Of Engineering Economic Analysis
ISBN: 9781118163832
6th Edition
Authors: John A. White, Kenneth E. Case, David B. Pratt