For the cash flows shown, you have been asked to calculate the present worth (in year 0)

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For the cash flows shown, you have been asked to calculate the present worth (in year 0) using i = 10% per year. Which of the following solutions is not correct?

3 Year 5 Cash Flow, $| 200 200 200 200 300 300 300


(a) P = 200 + 200(Pˆ•A,10%,3) + 300(Pˆ•A,10%,3)(Pˆ•F,10%,3)

(b) P = 200(Pˆ•A,10%,4) + 300(Pˆ•A,10%,3) (Pˆ•F,10%,3)

(c) P = [200(Fˆ•A,10%,7) + 100(Fˆ•A,10%,3)] (Pˆ•F,10%,6)

(d) P = [200(Pˆ•A,10%,7) + 100(Pˆ•A,10%,3) (Pˆ•F,10%,4)](Fˆ•P,10%,1)

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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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