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Find Present, Future, and Annual Worth for the 4 cash flows and compare for the best alternative. 8: Present Worth Method, Future Worth Method, Annual
Find Present, Future, and Annual Worth for the 4 cash flows and compare for the best alternative.
8: Present Worth Method, Future Worth Method, Annual Worth Method An expansion to a business is under study. Four feasible alternatives are found with different cash flow during 10 years of the useful life of such expansion. The initial investment and estimated revenue for all four alternatives (I, J, K, and L) are listed in the following table. All numbers are in thousands. Cash flow for four alternatives I, J, K, and L K Year 0 L -900 -1000 1 -1100 180 175 170 165 0 0 0 -1000 260 260 0 0 0 260 260 4 0 00 007 WN 0 0 160 260 0 0 7 155 150 145 370 370 370 370 370 0 0 0 0 0 0 8 9 0 140 135 10 0 1375Step by Step Solution
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