What is the equivalent annuity starting in year 1 and ending in year 5 for thefollowing project (assume i = 7%)n (year)Cash flow ($)10101-10002-6003-50041015-100A) 471.0B) 474.1C) 472.7D) 474.7

Answer information:Annual worth = P[i(1+i)^n / (1+i)^n-1] Where,P = Present value = 1938I = interest…

Answered: What is the equivalent annuity starting…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What is the equivalent annuity starting in year 1 and ending in year 5 for the following project (assume i = 7%) n (year) Cash flow ($) 10 10 1 -1000 2 -600 3 -500 4 10 15 -100 A) 471.0 B) 474.1 C) 472.7 D) 474.7