This preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: Problem 3. (25 points) What is the equivalent present value of the following set of cash flows? End of 1 st year: $1000 End of 3 rd year: $500 End of 6 th year  through end of 15 th year: $400 Note: There are twelve separate items in the above list, and assume that t = 0 at the present time and that t = n at the end of the n th year. Assume an interest rate of 6% for your calculations. Problem 4. (25 points) If you deposited the above set of cash flows in the bank at 6% interest, how much money would you have in your account at the end of year thirty, i.e. t = 30....
View
Full Document
 Fall '09
 FRAZIER
 Project Engineering, Practice Homework Assignment, new equipment item

Click to edit the document details