For the cash flow diagram shown, determine the value of G that will make the present worth in year 0 equal to $2500 at an interest rate of 10% per year.
 FIGURE 1.png)
Find present worth of gradient in year 1, move back to year 0, and then set equal to $2500
P1 = 900(P/A,10%,4) – G(P/G,10%,4)
= 900(3.1699) – G(4.3781)
= 2852.91 – 4.3781G
P0 = (2852.91 – 4.3781G)(P/F,10%,1)
= (2852.91 – 4.3781G)(0.9091)
= 2593.58 – 3.9801G
2500 = 2593.58 – 3.9801G
-93.58 = -3.9801G
G = $23.51
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