sent worth of income from an investment that follows an arithmetic gradient was projected to be P 475,000. If the income in year one is expected to be P 25,000, how much would the gradient have to be in each year through year 8 if the interest rate is 10% p

Cornerstones of Cost Management (Cornerstones Series)
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Chapter19: Capital Investment
Section: Chapter Questions
Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...
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The present worth of income from an investment that follows an arithmetic gradient was projected to be P 475,000. If
the income in year one is expected to be P 25,000, how much would the gradient have to be in each year through year 8 if the interest rate is 10% per year?

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