Engin Econ - NCEES problem 102 and CD

[shellbell500]

can anyone help me with what i'm doing wrong here? for problem 102, i thought it was easier to just treat each payment as a single event, and use P/F factors for each year to find the present worth of the future payments. when i did this for problem 102, i got the answer right (50K + 10K*.9091 + 60K*.8264 + 20K*.7513 + 20K*.683 = approx. $137,000, answer C).

the problem on the CD that comes with the book is identical with different numbers, but i am not getting the right answer with the same logic. so is my logic flawed and i got lucky on problem 102?

please help! thanks! (p.s. love those emoticons!!!)

:multiplespotting:

 

[mudpuppy]

You're not doing anything wrong. The CD has an error on it. Check NCEES' errata here.

Your logic is perfectly fine. They use P/A factors in the solution which simplifies the calculations a bit, but you should use whatever makes sense to you.

 

[Flyer_PE]

There is an errata out on the CD problem. The method for the problem in the book is correct. I think there is another thread out there for this one also.

Jim

 

[shellbell500]

There is an errata out on the CD problem. The method for the problem in the book is correct. I think there is another thread out there for this one also.
Jim

Thank you both! gives me a little peace of mind... (a little!)