For the cash flows shown in the diagram, determine the equivalent uniform annual worth over years 1 through 5 at an interest rate of 10% per year.
 FIGURE 1.png)
First find P in year 1, move to year 0, and then convert to A
P1 = 500(P/A,10%,4) – 50(P/G,10%,4)
= 500(3.1699) – 50(4.3781)
= $1366.05
P0 = P1(P/F,10%,1)
= 1366.05(0.9091)
= $1241.87
A = P0(A/P,10%,5)
= 1241.87(0.26380)
= $327.61
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