Consider the sets of investment projects in Table P5.17, all of which have a three-year investment life.
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Consider the sets of investment projects in Table P5.17, all of which have a three-year investment life.
(a) Compute the net future worth of each project at i = 15% Which project or projects are acceptable?
(b) Compute the terminal project balance for each project at i = 15%, and compare them with the net future worth of the projects in (a). What conclusions can you reach?
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TABLE P5.17 Period (n) 0 1 2 3 دیا A -$12,500 6,400 14,400 7,200 Project's Cash Flow B -12,500 -3,000 23,000 13,000 C 22,500 -7,000 -2,500 4,000 D -14,000 7,500 4,500 8,500
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