First draw a cash flow diagram for the cash flow series shown below. Then write an expression (e.g., P= 500(P/A 5%, 3) + 100(P/G 5%, 3) + ...) for the present worth of the following cash flow series. You must use at least one uniform series factor, at least one gradient series factor, and at least one geometric series factor. i= 5% per period. ΕΟΥ 1 5 4 -3,000 -9,000 -9,300 |-9,600 |-9,900 | 7,000 5,000 6,000 7,200 2 3 7 9 10 Cash 8,640 | 10,000 Flow a) b) Draw the cash flow diagram for the above cash flow series. Write down the expression for the present worth of the above cash flow series.

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.12: Uneven, Or Irregular, Cash Flows
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First draw a cash flow diagram for the cash flow series shown below. Then write an expression
(e.g., P= 500(P/A 5%, 3) + 100(P/G 5%, 3) + ...) for the present worth of the following cash flow series. You
must use at least one uniform series factor, at least one gradient series factor, and at least one geometric series
factor. i= 5% per period.
ΕΟΥ
1
5
4
-3,000 -9,000 -9,300 |-9,600 |-9,900 | 7,000 5,000 6,000 7,200
2
3
7
9
10
Cash
8,640 | 10,000
Flow
a)
b)
Draw the cash flow diagram for the above cash flow series.
Write down the expression for the present worth of the above cash flow series.
Transcribed Image Text:First draw a cash flow diagram for the cash flow series shown below. Then write an expression (e.g., P= 500(P/A 5%, 3) + 100(P/G 5%, 3) + ...) for the present worth of the following cash flow series. You must use at least one uniform series factor, at least one gradient series factor, and at least one geometric series factor. i= 5% per period. ΕΟΥ 1 5 4 -3,000 -9,000 -9,300 |-9,600 |-9,900 | 7,000 5,000 6,000 7,200 2 3 7 9 10 Cash 8,640 | 10,000 Flow a) b) Draw the cash flow diagram for the above cash flow series. Write down the expression for the present worth of the above cash flow series.
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