Question

Determine the uniform annual value for the cash flow below at an interest rate of 11% per year.

Answer 1

Answer:

$36,595

Explanation:

The computation of the uniform annual value is shown below:;

Before that we need to find out the present worth which is

= $30,000 × (P/A , 11%, 4) + $45,000 × (P/A , 11%, 4) × (P/F , 11%, 4)

= $30,000 × (3.1025) + $45,000 × (3.69590) (0.65873)

= $202,630.51

Now the annual worth is

= Present value × (A/P, 11%,9)

= $202,630.51 × 0.18060

= $36,595