Consider the sets of investment projects in Table P5.17, all of which have a three-year investment life.
Question:
(a) Compute the net present worth of each project at i= 15%.
(b) Compute the net future worth of each project at i = 15%.
Which project or projects are acceptable?
Transcribed Image Text:
Period Project's Cash Flow 0 $12,500 11,000 12.500 13,000 5,400 3000 7.000 5.500 14,400 21.000 2.000 5,500 7.200 13,000 4,000 8,500
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a PW 15 A 10 500 4 300P F 151 4800P F 15 2 5 500P F 15 3 485 PW 15 B 16 000 3 000P F 151 21 00...View the full answer
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