For another example of the use of arithmetic gradient formulas, suppose that we have cash-flows that are timed in exact reverse of the situation depicted in the previous example. End of Year Cash Flows ($) 1 8,000 2 7,000 6,000 4 5,000 Calculate the present equivalent at i= 10% per year, using arithmetic gradient interest factors. a. 29738 O b. 25360 O c. 20982 O d. 11472

For another example of the use of arithmetic gradient formulas, suppose that we have cash-flows that are timed in exact reverse of the situation depicted in the previous example. End of Year Cash Flows ($) 1 8,000 2 7,000 6,000 4 5,000 Calculate the present equivalent at i= 10% per year, using arithmetic gradient interest factors. a. 29738 O b. 25360 O c. 20982 O d. 11472

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter7: Valuation Of Stocks And Corporations

Section: Chapter Questions

Problem 23SP

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