Explore BrainMass
Share

Explore BrainMass

    Decreasing Geometric Gradient

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Decreasing Geometric Gradient
    My book does not explain well the formula for a Decreasing Geometric Gradient. For example: if I have an initial cost of 4 million and a yearly decreasing cost of 25% per year through year 5, what would be the equivalent PV and Annual Cost?

    © BrainMass Inc. brainmass.com October 9, 2019, 7:19 pm ad1c9bdddf
    https://brainmass.com/economics/exchange-rates/decreasing-geometric-gradient-114718

    Solution Summary

    The solution illustrates decreasing geometric gradient through an example. The formula of decreasing geometric gradient is determined.

    $2.19