TVM: Suppose you have the cash flow

Suppose you have the cash flow sequence shown below. Choose the elements below to form the factor notation of the present value.

- 7(P|A,i,9)/(1+i)^-1
- 7(P|G,i,8)
- -1(P|G,i,8)
- 7(P|A,i,2)/(1+i)^-1
- -1(P|G,i,8)/(1+i)
- 7(P|A,i,8)

Answer:

**P = 7(P|A,i,9)/(1+i)^-1 -1(P|G,i,8)**

Constant series of 7 for 9 periods - Linear gradient of -1 for 7 outflows (+1 for the pot)

page revision: 3, last edited: 02 Nov 2015 00:40