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Imagine you are a design engineer in a Toy Company. The Toy A costs $5000 as production cost. After 1^st, 2^nd, 3^rd, 4^th, and 5^th
Imagine you are a design engineer in a Toy Company. The Toy A costs $5000 as production cost. After 1^st, 2^nd, 3^rd, 4^th, and 5^th year it gains profits of $1000, $2000, $1000, $3000, and $4000, respectively. The Toy B costs $10000 as production cost. After 1^st, 2^nd, 3^rd, 4^th, and 5^th year it gains profits of $3000, $4000, $0, $4000, and $5000, respectively. The effective interest rate i' is 3%/yr. Which product should you recommend based on the present worth value
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