Homework: HW_5_Present Worth Analysis - Covers NPW and some Question 9, Problem 5-38 (algorithmic) Part 1 of 6 HW Score: 63.52%, 85.75 of 135 points Points: 0 of 10 Save You are considering two investment options. In option A, you have to invest $4,500 now and $700 three years from now. In option B, you have to invest $3,700 now, $1,400 a year from now, and $1,000 three years from now. In both options, you will receive four annual payments of $1,600 each. (You will get the first payment a year from now.) Which of these options would you choose based on (a) the conventional payback criterion, and (b) the present worth criterion, assuming 11% interest? Assume that all cash flows occur at the end of a year. Click the icon to view the interest factors for discrete compounding when i=11% per year. More Info (a) The conventional payback period for option A is years. (Round to the nearest whole number place.) Single Payment Compound Amount Factor Present Worth Compound Amount Equal Payment Series Sinking Present Fund Worth Capital Recovery Factor Factor Factor Factor Factor N (F/P, i, N) (P/F, i, N) (F/A, i, N) (A/F, i, N) (P/A. i, N) (A/P, i, N) 1 1.1100 0.9009 1.0000 1.0000 0.9009 1.1100 2 1.2321 0.8118 2.1100 0.4739 1.7125 0.5839 3 1.3676 0.7312 3.3421 0.2992 2.4437 0.4092 4 1.5181 0.6587 4.7097 0.2123 3.1024 0.3223 5 1.6851 0.5935 6.2278 0.1606 3.6959 0.2706 6 1.8704 0.5346 7.9129 0.1264 4.2305 0.2364 7 2.0762 0.4817 9.7833 0.1022 4.7122 0.2122 8 2.3045 0.4339 11.8594 0.0843 5.1461 0.1943 9 2.5580 0.3909 14.1640 0.0706 5.5370 0.1806 10 2.8394 0.3522 16.7220 0.0598 5.8892 0.1698 Print Done