In calculating equivalent values, what does the symbol G represent?

In the context of calculating equivalent values in finance and engineering economics, the symbol G is commonly associated with a uniform gradient. This gradient signifies a cash flow that increases by a constant amount each period—whether annually or at another regular interval.

When using G in calculations, it implies that you expect the cash flow to not only continue but to increase consistently over time. This is particularly useful when modeling scenarios such as increasing salaries, escalating costs, or investments where the returns grow steadily. The uniform gradient can be applied in present worth calculations, future worth calculations, or when assessing the overall value of cash flows that change uniformly over time.

Understanding G in this way is essential for engineers and financial analysts, as it aids in making informed decisions based on projected cash flows.