For the cash flow shown below determine the value of X that

For the cash flow shown below, determine the value of X that will make the Net Present Worth at year 0 equal to $2,000 at an interest rate of 10% per year.

Year	0	1	2	3	4	5	6	7	8	9
Cash flow($)	100	100	X	200	300	400	500	1000	700	500

Find X so that

NPW = NPW

2000 = 100(1+10%)^-0 + 100(1+10%)^-1 + X(1+10%)^-2 + 200(1+10%)^-3 + 300(1+10%)^-4 + 400(1+10%)^-5 + 500(1+10%)^-6 + 1000(1+10%)^-7 + 700(1+10%)^-8 + 500(1+10%)^-9

2000 = 2128.44 + X(1+10%)^-2

This gives X = (2000 - 2128.44)/(1+10%)^-2

= -155.41

For the cash flow shown below, determine the value of X that will make the Net Present Worth at year 0 equal to $2,000 at an interest rate of 10% per year. Year

For the cash flow shown below determine the value of X that

Solution

Get Help Now

Submit a Take Down Notice