Question
Engineering Economics problem Kindly solve correctly and pls dont use excel. Thanks a lot. 1 . (30 points). For the cash flows given in the
Engineering Economics problem
Kindly solve correctly and pls dont use excel. Thanks a lot.
1. (30 points). For the cash flows given in the Table below, convert it to an equivalent uniform series over periods (every 2 months) 1 through 5. With an interest rate of 20% compounded quarterly.
We are told not to use irregular cash flow series to solve, otherwise no point will be given.
Every 2 months | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
Cash flow | 0 | 0 | 0 | 0 | 400 | 400 | 800 | 1200 | 1600 |
2. (25 points). For the cash flow profile and interest rates given in the table below (This is about Variable Interest Rates)
Year | 0 | 1 | 2 | 3 | 4 |
Cash flow $ | -1000 | -1500 | 2500 | 0 | 4000 |
Interest Rate/year | N/A | 4% | 5% | 5% | 3% |
a.Determine the value of the cash flow profile at year 0
b. Find the equivalent uniform series from year 3 to 4
Thanks for your help
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