Gradient Factors (P/G and A/G) A geometric gradient
series is a cash flow series that either increases or decreases by a constant percentage each period. The uniform change is called the rate of change. g = constant rate of change, in decimal form, by which cash flow values increase or decrease from one period to the next. The gradient g can be + or -. A1 = initial cash flow in year 1 of the geometric series. Pg = present worth of the entire geometric gradient series, including the initial amount A1 Note that the initial cash flow A1 is not considered separately when working with geometric gradients.