Question: please help thanks! Section II. Problem Solving. SHOW YOUR WORK FOR CREDIT ( 60 points total) 2.1[20 points]. Given the cash flows in table below.

please help thanks!
please help thanks! Section II. Problem Solving. SHOW YOUR WORK FOR CREDIT

Section II. Problem Solving. SHOW YOUR WORK FOR CREDIT ( 60 points total) 2.1[20 points]. Given the cash flows in table below. Determine the value of P,i=10% per year. Show all your work for credit Hints: - If you decide to solve as linear gradient series, use (P/G,i,n) formula below where G is the linear increment, just figure out what is G. Notice G increment starts in year 2, see figure above; Formula will only give you the increasing component to present, you still need to add the fixed payment series (P/A,i,n). You can use the attached interest lable to verify both (P/G,i,n) and (P/A,i,n) calculations. The sum of both is your answer to b) below. - If this sounds complicated, just do (P/F,i,n) for each of the 4 flows separately. a) [3 points] Draw a cashflow for the project. b) [7 points] Determine the value of P, the net present worth at i=10%. c) [10 points] Consider the case in which P is the initial investment, and instead of the value found in b) above, P is $3,200, is this a worthwhile project if evaluated at a 10% rate? Include a revised cash flow in your response. Explain why or why not. d) [Extra 3 points]. Would your response to c) change if the interest rate is 5% ? Explain your response, talking about the impact of the interest rate on net present value

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