Using the least number of interest factors, compute the unknown values in each cash flow diagram. When possible, avoid multiplying each individual cash flow entry by the single value interest equation. EXAMPLE: Cash Flow Diagram (a) For this example I'll calculate the FUTURE WORTH (FW) of the cash flow: $(F/P, 10%, 4 )+G(A/G, 10%, 4 ) ( F/A, 10%, 4)-0 THIS FACTOR CALCULATES THE FW OF S AT TIME PERIOD 4 THIS FACTOR "RE-DISTRIBUTES" G THIS FACTOR CACLULATES INTO A UNIFORM DISTRIBUTION THE FW OF A AT TIME A FROM TIME-PERIOD ZERO TO 4 PERIOD 4 where S unknown G -50 ( F/P, 1096,4 ) 1.464 ( A/G, 10%,4 ) 1.381 ( F/A, 10%,4)-4.641 (1.464) 50 (1.381) (4.641) 0 S50 (1.381) (4.641/1464)-218.89 Alternate Solution Calculate the PRESENT WORTH (PW) of the same cash flow S + G (PG, 10%, 4)s 0 where (P/G, 1096, 4)s 4.378 50 (4.378) 0 50 (4.378) -218.90