Example : Review Present Value Find Present Value ( PV) of loyrs of Revenue with $2000 per year, and interest of 5% ( apr ) Note: Helps to draw it out start revenue end of yr ! $ 2K $15. 49K - no 1 Cast 2 3 4 5 10 0 2 3 9 Right now Find P given A Table A. 3 P = A ( VA, i, n) = 2 k ( /A, 5%, 10 ) = 2K (7.72 )= = 15, 440 Find PV with revenue of $/k per year, and maintenance cost of 300 per year, for 8 yrs, with i= 7% Alk AlK 1 700 1 700 1 700 $4.179 1 11 18 Do Cost 2 0 1 2 3 4 5 6 7 8 300 300 300 P= 700(PA, 7%, 8)= 700(5.97) - 14 , 179