Some of the following future cash flows have been expressed in then current (future) dollars and others

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Some of the following future cash flows have been expressed in then current (future) dollars and others in CV dollars. Use an interest rate of 10% per year and an inflation rate of 6% per year.

(a) Find the present worth.

(b) Use a spreadsheet to find the PW value using one NPV function with all cash flows expressed as future dollars.

Cash Flow, $ Year Expressed as 16,000 CV Then-current Then-current 3 40,000 4 12,000 26,000 CV

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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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Question Posted: Dec 26, 2018 06:40 AM

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Some of the following future cash flows have been expressed in then current (future) dollars and others

Question:

Cash Flow, $ Year Expressed as 16,000 CV Then-current Then-current 3 40,000 4 12,000 26,000 CV

Step by Step Answer:

a Use i f for future dollars and i for CV dollars i f 010 006 010006 0166 166 PW 16000 ...View the full answer

Engineering Economy

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