Example 1: Applying present worth when useful lives are equal Interest rate: 7% 0-1- P = 10,000 Device A A = 3000 -2-3- n = 5 years -4- 5 3000 01- P = 13,500 Device B 4500 4000 FII 3500 23 n = 5 years 5000 -4 -5

Example 1: Applying present worth when useful lives are equal Interest rate: 7% Device A