{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Ch3-Lecture_Notes

# Ch3-Lecture_Notes - Combining Factors Learning Objectives 2...

This preview shows pages 1–8. Sign up to view the full content.

Combining Factors 05/07/09

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Learning Objectives 2
Uniform Series that are SHIFTED A shifted series where present worth (PW) point in time is NOT t = 0. Shifted either to the left of “0” or to the right of t = “0”. Dealing with a uniform series: The PW point is always one period to the left of the first series value 3

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Shifted Series 4 0 1 2 3 4 5 6 7 8 A = -\$500/year Consider: P of this series is at t = 2 (P 2 or F 2 ) P 2 = \$ 500 (P/A,i%,4 ) or could refer to as F 2 P 0 = P 2 (P/F,i%,2 ) or F 2 (P/F,i%,2) P 2 P 0
Series with other single cash flows It is common to find cash flows that are combinations of series and other single cash flows. Solve for the series present worth values then move to t = 0. Solve for the PW at t = 0 for the single cash flows. Add the equivalent PW’s at t = 0. 5

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Series with other cash flows Consider: 6 0 1 2 3 4 5 6 7 8 A = \$500 F 5 = \$400 F 4 = \$300 Find the PW at t = 0 cash flow. i = 10% P =\$1583.56 *
The Linear Gradient - revisited The Present Worth of an arithmetic gradient

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern