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Math Help - Engineering economics - Cash flows

  1. #1
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    Engineering economics - Cash flows

    What is the value at the end of the 5th year of the estimated cash flows? The first row shows the year (n) and all interest is compounded annually. Assume all amounts (incomes and costs) occur at the end of each respective period. Please use 2 decimal places in your answer.

    1 2 3 4 5
    income cost income cost income
    $5,622 $4,357 $9,622 $2,100 $5,290
    10% 22% 10% 10% 5%


    Answer
    Correct Answer: 14,942.14 1%

    I am not entirely sure how to get the correct answer... I have come close in using some future worth functions, but I guess the cost, and income are throwing me off. My answer was close, but my big issue is kind of understanding, setting up, and process.
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  2. #2
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    Oct 2011
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    Re: Engineering economics - Cash flows

    40 seconds in Excel :-)

    +$5,622 * (1 + 0,1)^4
    -$4,357 * (1 + 0,22)^3
    +$9,622 * (1 + 0,10)^2
    -$2,100 * (1 + 0,10)^1
    +$5,290 * (1 + 0,05)^0
    -----------------------
    14942,14
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