QUESTION 3 A geometric gradient has an initial cost of $1,500 in year 0, the annual cost of $2,000 for the first four years, and the annual cost are increasing by g= 8% per year after that (starting in year 5). Assume an interest rate of 8% per year. Find the present worth of the cash flow if n = 7 years. Year 0 1 2 3 5 Cash Flow, $ 1.500 2,000 2,000 2,000 2,000 2.000 2,000 (1+g)n-4 (1+8) 4 n