Assignment on

Cash Flow Equivalence

MECECON ER1

1
Problem #1
Solve for the following:
1) Present worth equivalence
2) Annual worth equivalence
3) spread from years 1 to 10
4) Future worth equivalence at the end of year 6
F = $7000

i = 5% F = $5000
F = $4000

0 1 2 3 4 5 6 7 8 9 10

P=?

2
Problem #2
Solve for the following:
1) Present worth equivalence
2) Annual worth equivalence spread from years 1 to 10
3) Future worth equivalence at the end of year 8
4) Future worth equivalence at the end of year 10

i = 10%

0 1 2 3 4 5 6 7 8 9 10

A = $3000
P=?

3
Problem #3
Solve for the following:
1) Present worth equivalence
2) Annual worth equivalence spread from years 1 to 10
3) Future worth equivalence at the end of year 5
4) Future worth equivalence at the end of year 10

i = 13%

0 1 2 3 4 5 6 7 8 9 10

$500
$1000
$1500
$2000
P=? $2500
$3000

4
Problem #4
Solve for the following:
1) Present worth equivalence
2) Annual worth equivalence spread from years 1 to 10
3) Future worth equivalence at the end of year 3
4) Future worth equivalence at the end of year 8

i = 8%
0 1 2 3 4 5 6 7 8 9 10

$1000
$1000(1.11)
$1000(1.11)2
P=? $1000(1.11)3
$1000(1.11)4
$1000(1.11)5

$1000(1.11)6