Chapter 3

Question 1

Shifted series

Answer 1

When a uniform series begins at a time other than the end of period one

Question 2

The present worth is always located…

Answer 2

One period prior to the first uniform series amount when using the P/A factor.

Question 3

The future worth is always located in…

Answer 3

The same period as the last uniform series amount when using F/A factor.

Question 4

The present worth of an arithmetic gradient

Answer 4

Will always be located too. Before the gradient starts.

Question 5

Shifted gradient

Answer 5

A conventional gradient series starts between periods one and two of the cash flow sequence. Gradient starting at any other time is called a shifted gradient.

Question 6

How to find the equivalent to a series of a shifted gradient through all n periods

Answer 6

First find the present or of the gradient at actual times zero, then apply the (A/P, i,n) factor

Question 7

The present worth of a geometric gradient series

Answer 7

Will always be located too. Before the gradient starts, and the initial amount is included in the resulting present worth.

Question 8

Shifted gradient series

Answer 8

The constant gradient is negative G or the percentage change is negative G from one period to the next, and the first appearance of the gradient is at some time. Other than your two of the series.