Answer true or false for the following questions: a) If you multiply the A/F, F/P, and P/G factors together, you will obtain the value for the G/A factor. b) For an arithmetic gradient series of monthly cash flows that begins at the end of 25th month, the A/G factor will yield an “A” value beginning at the end of two years. c) Consider arithmetic gradient series, G = 100, starting at time period 7 with five cash flows. An equivalent uniform series A, starting at time period 2 for four time periods is obtained by 100(P/G, i%, 6)(P/F, i%, 4)(A/P, i%, 4). d) The difference between consecutive cash flow balances corresponding to consecutive time periods in discounted payback period calculation is equal and the cash flow balance is zero at payback period. e) If the B/C ratio for three alternatives A, B, and C are 2.8, 3.3 and 1.95 respectively, the best alternative is always “B” as it has the largest B/C ratio.
Answer true or false for the following questions:
a) If you multiply the A/F, F/P, and P/G factors together, you will obtain the
value for the G/A factor.
b) For an arithmetic gradient series of monthly cash flows that begins at the end
of 25th month, the A/G factor will yield an “A” value beginning at the end of
two years.
c) Consider arithmetic gradient series, G = 100, starting at time period 7 with
five cash flows. An equivalent uniform series A, starting at time period 2 for
four time periods is obtained by 100(P/G, i%, 6)(P/F, i%, 4)(A/P, i%, 4).
d) The difference between consecutive cash flow balances corresponding to
consecutive time periods in discounted payback period calculation is equal
and the cash flow balance is zero at payback period.
e) If the B/C ratio for three alternatives A, B, and C are 2.8, 3.3 and 1.95
respectively, the best alternative is always “B” as it has the largest B/C ratio.
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