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show calculation of how to get to the number 2.2832, and 3.35216??how we calculate EAC in detail. show calculation manually in detail please, no calculator!!
show calculation of how to get to the number 2.2832, and 3.35216??how we calculate EAC in detail. show calculation manually in detail please, no calculator!! thank you so much
Two mutually exclusive projects have the following positive NPVs and project lives. Project Project A Project B NPV $5,000 $6,500 Life 3 Years 5 Years If the cost of capital were 15 percent, which project would you accept? O Project A, because it has higher EAC O Project B, because it has higher EAC O Project A, because its NPV can be earned more quickly O Project B, because it has higher NPV EAC(A) = 5,000/2.2832 = 2,189.88. (Accept the project with higher EAC.) EAC(B) = 6,500/3.35216 = 1,939.05. Using a financial calculator: EAC(A) = PV = 5,000; 1 = 15; FV = 0; & N= 3; Compute: PMT= -2,189.88. EAC(B) = PV = 6,500; 1 = 15; FV = 0; & N= 5; Compute: PMT = -1,939.05Step by Step Solution
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