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The following equation computes the equivalent present worth of a cash flow stream. Draw the original cash flow diagram. Assume the time period is in
The following equation computes the equivalent present worth of a cash flow stream. Draw the original cash flow diagram. Assume the time period is in years and the interest rate is 10%/year compounded annually. P = $500+ $50(P/G,10%,3)(P/F,10%,2) -$50(P/A,10%, 3)(F / P,10%,1)+$30(P/4,6%,10%,3)(P/F,10%,5) -$1000(P/F,10%,10)
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