Show, in factor notation, the present worth of the following cash flow. Solution Year .

1. Show, in factor notation, the present worth of the following cash flow.
Year Cash
0 0
1 0
2 0
3 1
4 3
5 5
6 7
7 9
8 11
9 13
10 15
Solution
Year
Factor Name Factor Notation Formula
Present Worth Factor = ( P/F, i,N) = F/(1+i)^N
Year Cash Present Worth
0 0 0
1 0 0
2 0 0
3 1 =1/(1+i)^3
4 3 =3/(1+i)^4
5 5 =5/(1+i)^5

2. 6 7 =7/(1+i)^6
7 9 =9/(1+i)^7
8 11 =11/(1+i)^8
9 13 =13/(1+i)^9
10 15 =15/(1+i)^10