Quesrtion: Refer to Example. Suppose the cash-flow sequence continues for 10 years (instead of four). Determine the new values of P, A, and F.
Example: Equivalence Calculations for an Increasing Geometric Gradient Series Consider the following EOY geometric sequence of cash flows and determine the P, A, and F equivalent values. The rate of increase is 20% per year after the first year, and the interest rate is 25% per year.