Question: GRADIENT GP Determine the present worth of a geometric gradient series with a cash flow of $50,000 in year 1 and increases of 6% each

GRADIENT GP

Determine the present worth of a geometric gradient series with a cash flow of $50,000 in year 1 and increases of 6% each year through year 8. The interest rate is 10% per year.

. PW ANALYSIS

Perform a PW analysis to determine which of the following alternate should be selected.

	A	B
First Cost	80000	50000
Annual M & O Cost	18000	21000
Annual Income	6000	4000
Life	4	2
Interest Rate	12%

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