Find the present worth for the following cash flow series (in $1000 units).
What will be an ideal response?
In $1000 units
P = 100(P/F,6%,1) + 200(P/A,6%,2)(P/F,6%,2) + 90(P/A,6%,4)(P/F,6%,4)
= 100(0.9434) + 200(1.8334)(0.8900) + 90(3.4651)(0.7921)
= 94.34 + 326.35 + 247.02
= $667.71 ($667,710)
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