Consider an EOY geometric gradient, which lasts for eight years, whose initial value at EOY one is $5,000 and f= 6% per year thereafter. Find the equivalent uniform gradient amount over the same...

Consider an EOY geometric gradient, which lasts for eight years, whose initial value at EOY one is $5,000 and f= 6% per year thereafter. Find the equivalent uniform gradient amount over the same period if the initial value of the cash flows at the end of year one is $4,000. Answer the following questions to determine the value of the gradient amount, G. The interest rate is 8% per year. Solve, a. What is P₀
for the geometric gradient series? b. What is P₀
of the uniform (arithmetic) gradient of cash flows? c. What is the value of G?