A geometric gradient has a positive cash flow

Reference no: EM13308828

A geometric gradient has a positive cash flow of $1,000 at EOY zero (now), and it increases 5% per year for the following five year. Another geometric gradient has a positive value of $2,000 at EOY one, and it decreases 6% per year for years two through five if the annual interest rate is 10%, which geometric gradient would you prefer?

Reference no: EM13308828

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