Question
Calculate the present worth of each option. Would any of these options be a bad investement or not worthy to invest on? why? why not?
Calculate the present worth of each option. Would any of these options be a bad investement or not worthy to invest on? why? why not?
Please be detailed on process I want to learn how to do it by myself
OPTION 1:
1st Costs $5K
Annual Revenues $14K
Annual Costs $4K
Life (or N) 4
Salvage Value $0
Interest rate 7%
OPTION 2:
1st Costs $10L @ time zero & 3K @the end of year 1
Annual Revenues $14K
Annual Costs $7K
Life (or N) 7
Salvage Value $0
Interest rate 7%
OPTION 3:
1st Costs $100K
Annual Revenues $40K
Annual Costs $15K
Life (or N) 10
Salvage Value $25
Interest rate 7%
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Introduction to Finance Markets Investments and Financial Management
Authors: Melicher Ronald, Norton Edgar
15th edition
9781118800720, 1118492676, 1118800729, 978-1118492673
