The future worth in year 10 of a decreasing geometric gradient series of cash flows was found to be $40000. If the interest rate was 10% per year and the annual rate of decrease was 8% per year, what was the cash flow amount in year 1? (use 2 decimal places after dot.) The future worth in year 10 of a decreasinggeometric gradient series of cash flows wasfound to be $40000. If the interest rate was10% per year and the annual rate ofdecrease was 8% per year, what was thecash flow amount in year 1? (use 2 decimalplaces after dot.)Select one:a. 2728b. 7722O c. 15444d. 3336e. 1668

Future worth F= $40,000Interest rate (i) =10%rate of change (g) =-8%Let the cash flow in year 1 is…

Answered: The future worth in year 10 of a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The future worth in year 10 of a decreasing geometric gradient series of cash flows was found to be $40000. If the interest rate was 10% per year and the annual rate of decrease was 8% per year, what was the cash flow amount in year 1? (use 2 decimal places after dot.)

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