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Investor X has 7,000 to spend on the following three projects. Use the AW method to determine which of these independent investments are financially acceptable
Investor X has 7,000 to spend on the following three projects. Use the AW method to determine which of these independent investments are financially acceptable at 6% per year compounded monthly interest rate.
| Option | Installed Cost | Return per month |
| A | 4500 | 220 |
| B | 3000 | 200 |
| C | 2200 | 140 |
Lifelong period. Use CC=AW/i to get present worth
See Below Answer. How do you get this answer?
| P5 | ||
| PP-Month | done by instrutor | |
| CP-Month | done by instrutor | |
| Time Window - Month | ||
| A | $ 39,500.00 | done by instrutor |
| B | $ 37,000.00 | done by instrutor |
| C | $ 25,800.00 | done by instrutor |
| A,C | $ 65,300.00 | Winner |
| B,C | $ 62,800.00 |
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