Question
Determine the present worth (at time 0) of the following series of cash flows using a geometric gradient. The real interest rate is 5% per
Determine the present worth (at time 0) of the following series of cash flows using a geometric gradient. The real interest rate is 5% per year.
| EOY | 3 | 4 | 5 | 6 | ... | 25 |
| Cash Flow | $1,000 | $1,100 | $1,210 | $1,331 |
| $8140 |
The PW of the series of cash flows is $
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Case Studies In Finance
Authors: Robert F. Bruner
4th Edition
0072338628, 978-0072338621
