Question
Methods of economic evaluation of alternatives 1. An investor can make eight payments of $ 17,000 at the end of the year beginning in the
Methods of economic evaluation of alternatives 1. An investor can make eight payments of $ 17,000 at the end of the year beginning in the first year, expected to generate revenues of $ 22,000 at the end of year 5 where they will increase annually at $ 1,500 until the project is completed. If the investor can pay a fee 13% return on other investments. Is this alternative attractive for a life 20-year economic? a. Evaluate the project by the Annual Cost method, and make the decision. b. Evaluate the project by the Present Value method, for a study time of 10 years, and make the decision.
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