Chap 4 examples - part 3

# Chap 4 examples - part 3 - Example 17 What is the value of...

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Example 17 What is the value of K that makes the two cash flows equivalent? Take i = 12% per year. Diagram from Problem 4-79 in book. Chap 4 examples - Part 3

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Example 18 A geometric gradient that increases at f = 6% per year for 15 years is shown in the diagram. Annual interest rate is 12%. What is the present equivalent value of this gradient? Diagram from Problem 4-87 in book. Chap 4 examples - Part 3
Example 19 What is the present equivalent of the following series of cash flows? What is the uniform annual equivalent of the original cash flows? (Note that f = 20% after the first year, i =25% compounded annually) End of Year Cash Flows (\$) 1 1,000 2 1,200 3 1,440 4 1,728 Chap 4 examples - Part 3

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Determine the present equivalent value of the cash-flow diagram of Figure P4- 97 when the annual interest rate varies as indicated. Diagram from Problem 4-97 in book. Chap 4 examples - Part 3
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## This note was uploaded on 02/07/2012 for the course IE 343 taught by Professor Vincent,g during the Spring '08 term at Purdue.

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Chap 4 examples - part 3 - Example 17 What is the value of...

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