Part 1: Find the present worth in year 0 for the cash flows shown in the...
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Part 1: Find the present worth in year 0 for the cash flows shown in the figure. Consider i = 10% per year. [10 marks] i=10% per year 1 3 4 5 6 7 8 Year $50 $50 $70 $90 $170 $130 $150 $170 Part 2: [5 marks] The equivalent annual worth of an increasing arithmetic gradient is $135,300. If the cash flow in year 1 is $35,000 and the gradient amount is $19,000, what is the value of n at an interest rate of 10% per year? Part 1: Find the present worth in year 0 for the cash flows shown in the figure. Consider i = 10% per year. [10 marks] i=10% per year 1 3 4 5 6 7 8 Year $50 $50 $70 $90 $170 $130 $150 $170 Part 2: [5 marks] The equivalent annual worth of an increasing arithmetic gradient is $135,300. If the cash flow in year 1 is $35,000 and the gradient amount is $19,000, what is the value of n at an interest rate of 10% per year?
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