Question: 4. (2 Points) Geometric gradient ( mathrm{c} ) has a positive cash flow of ( $ 1,500 ) at EOY 1 and it increases 4
4. (2 Points) Geometric gradient \\( \\mathrm{c} \\) has a positive cash flow of \\( \\$ 1,500 \\) at EOY 1 and it increases \4 year for years two through five. Geometric gradien (Dhas a positive value of \\( \\$ 2,500 \\) at EOY 1 , an decreases \8 per year for years two through five. If the annual interest rate is \10, which of following statements is true: a) Gradient \\( C \\) is better than gradient \\( D \\) with \\( \\$ 4,844 \\) as extra present worth. b) Gradient \\( D \\) is better than gradient \\( C \\) with \\( \\$ 4,844 \\) as extra present worth. c) Gradient \\( C \\) is better than gradient \\( D \\) with \\( \\$ 2,091 \\) as extra present worth. d) Gradient \\( D \\) is better than gradient \\( C \\) with \\( \\$ 2,091 \\) as extra present worth. e) Both gradients are equivalent at this interest rate
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
