Consider a cash flow from the end of the first year to infinity. Assume that at the end of odd years, a geometric cash flow whose growth rate is 2% and C1=$10,000 and at the end of even years, an arithmetic gradient cash flow whose A value is $5,000 and G value is $1,000.

1. Calculate the present worth of this cash flow using a compound interest rate of 5% per year.
2. What is the equivalent uniform annual cash flow?
3. If the given cash flow is benefits and the first cost is $100,000, what is the rate of return of this cash flow?

Answer rating: 100% (QA)

WHAT EXACTLY IS CASH FLOW A businesss cash is continually flowing in and out When a retailer buys merchandise for example money leaves the company and goes to its suppliers When the same shop sells so... View the full answer