Future Worth and Project Balance

1 -A project has a service life of five years with an initial investment outlay of $200,000. If the discounted payback period occurs at the end of the project service life (say five years) at an interest rate of 10%, what can you say about the NFW of the project?

2 -Consider the following cash flows and present-worth profile.

(a) Determine the values of X and Y.

(b) Calculate the terminal project balance of project 1 at MARR = 24%.

(c) Find the values of a, b, and c in the NPW plot.