What is linear gradient series cash flow?

We call such a cash flow pattern a linear gradient series because its cash flow diagram produces an ascending (or descending) straight line. In addition to P, F, and A, the formulas used in such problems involve the constant amount, G, of the change in each cash flow.

What is the relation between gradient series and annual worth?

The corresponding equivalent annual worth AT is the sum of the base amount series annual worth AA and gradient series annual worth AG, that is, Three factors are derived for arithmetic gradients: The P/G factor for present worth, the A/G factor for annual series, and the F/G factor for future worth.

What is P A and P f?

i = Interest rate per interest period. n = Number of interest periods. P = A present sum of money. F = A future sum of money. A = An end-of-period cash receipt or disbursement in a uniform series continuing for n periods.

What are the five types of cash flow series?

Types of Cash Flow

• Cash Flows From Operations (CFO)
• Cash Flows From Investing (CFI)
• Cash Flows From Financing (CFF)
• Debt Service Coverage Ratio (DSCR)
• Free Cash Flow (FCF)
• Unlevered Free Cash Flow (UFCF)

How do you calculate cash flow gradient?

Alternately, the annual worth of the gradient cash flow could be obtained by first finding the present worth, P, of the cash flow (as in the example above) and then converting the P value into an A value using the relation A = P(A/P, i,n).

What is a gradient series?

The arithmetic gradient series cash flow involves an increase or decrease of a constant amount in the cash flow of each analysis period. Thus, the receipt or disbursement at a particular time is greater or lower than the receipt or disbursement at the preceding period by a constant amount.

What is the formula of P A?

P(A) = n(A)/n(S) P(A) is the probability of an event “A” n(A) is the number of favourable outcomes. n(S) is the total number of events in the sample space.

What does P AB mean?

P(A/B) is known as conditional probability and it means the probability of event A that depends on another event B. It is also known as “the probability of A given B”. P(A/B) Formula is used to find this conditional probability quickly.

What is cash flow series?

A. Uniform gradient signifies that an income or disbursement changes by the same amount in each interest period. Either an increase or decrease in the amount of a cash flow is called the gradient. The gradient in the cash flow may be positive or negative.

What is the difference between arithmetic and geometric gradient series?

The difference between geometric gradient series and arithmetic gradient series is: Select one: a. Initial cash flow A in period one can be considered separately in geometric series while can’t be considered separately when working with arithmetic series.

What is PA and B?

Joint probability: p(A and B). The probability of event A and event B occurring. It is the probability of the intersection of two or more events. The probability of the intersection of A and B may be written p(A ∩ B). Example: the probability that a card is a four and red =p(four and red) = 2/52=1/26.