Question: Pumping Plan: Initial Invest. Annualized: A = 1 . 4 M ( A P , 1 0 % , 4 0 ) = 1 .

Pumping Plan: Initial Invest. Annualized: A=1.4M(AP,10%,40)=1.4M(0.1023),=$143,200 Additional invest. in 10thyr:A=200000(PF,10%,10)(AP,10,40)
=200000**0.3855**0.1023=$7,890
How did they calculate (P/F,10%,10) and (A/P,10,40) to be 0.3855 and 0.1023?
 Pumping Plan: Initial Invest. Annualized: A=1.4M(AP,10%,40)=1.4M(0.1023),=$143,200 Additional invest. in 10thyr:A=200000(PF,10%,10)(AP,10,40) =200000**0.3855**0.1023=$7,890

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