Shifted Uniform Series

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Shifted Uniform Series A shifted uniform series starts at a time other than year 1 When using P/A or A/P, P is always one year ahead of first A When using F/A or A/F, F is in same year as last A Example: The present worth of the cash flow shown below at i=10% is: (a) $25,304 (b) $29,562 (c)$34,462 (d) $37,908 P=? A=10,000 0 1 2 3 4 5 6 i=10% Solution: (1) Use P/A factor with n=5 to get P in year 1: P1= 10,000(P/A,10%,5) =10,000(3.7908) = $37,908 (2) Use P/F factor with n=1 to move P back to year 0: P0= P1(P/F,10%1) = 37,908(0.9091) = $34,462 Answer is (c)