What is the capitalized worth, when i = x1% per year, of $X2 per year, starting...

 

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What is the capitalized worth, when i = x1% per year, of $X2 per year, starting now and continuing forever; and $10X2 in year five, repeating every four years thereafter, and continuing forever? What is the capitalized worth, when i = x1% per year, of $X2 per year, starting now and continuing forever; and $10X2 in year five, repeating every four years thereafter, and continuing forever?

Answer rating: 100% (QA)

To calculate the capitalized worth of the cash flows described we need to use the formula for t... View the full answer