# A cash flow profile starts with ($2),000 and increases by ($1),000 each year up to ($21),000 at

## Question:

A cash flow profile starts with \($2\),000 and increases by \($1\),000 each year up to \($21\),000 at time 20. Then it starts again with \($21\),000 at time 21 and decreases by \($1\),000 each year to \($2\),000 at year 40. You desire to convert it to an equivalent gradient series beginning at year 1 with \($X\) and continuing through year 40 with \($500\) increases each year (ending at $X + 19,500 at time 40). Interest is 8 percent compounded annually. What is X?

Fantastic news! We've Found the answer you've been seeking!

## Step by Step Answer:

**Related Book For**

## Principles Of Engineering Economic Analysis

**ISBN:** 9781118163832

6th Edition

**Authors:** John A. White, Kenneth E. Case, David B. Pratt