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Consider a cash flow profile in which $3000 is received at t=1, spent at t=2, and received at t=5, and $3000 is received at t=3.
Consider a cash flow profile in which $3000 is received at t=1, spent at t=2, and received at t=5, and $3000 is received at t=3. Suppose the interest rate is 5% the first 2 periods, 7% the next two periods and is 8% the 5th period. ( Note: t denotes end of period t.) Find the equivalents for the cash flow profile for the following items. a) Present worth b) Uniform series equivalent c) Geometric Series Equivalent (j = 1% for the entire period) Show your calculation in detail and explain how the results are obtained.
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