Find the present worth in year 0 for the cash flows shown. Let i = 10% per year.





What will be an ideal response?


P = 200(P/F,10%,1) + [50(P/A,10%,7) +20(P/G,10%,7)](P/F,10%,1)
= 200(0.9091) + [50(4.8684) +20(12.7631)](0.9091)
= $635.17

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