Question
You have been asked to evaluate four INDEPENDENT projects as indicated below. You have been asked to use a MARR value of 15% ycy
You have been asked to evaluate four INDEPENDENT projects as indicated below. You have been asked to use a MARR value of 15% ycy for your analysis. Project A B C D Initial Investment Annual Net Cash Flow Life, Years -$8,000.00 $3,870.00 6 -$15,000.00 $2,930.00 9 -$6,000.00 $2,080.00 5 -$10,000.00 $5,060.00 3 PW of A = -8,000 + 3,870(P/A 15,6)= $6,646 PW of B-15,000+ 2,930(P/A 15,9) = -$1,017 PW of C= -6,000+ 2,080(P/A 15,5) = $973 PW of D= -10,000+ 5,060(P/A 15,3) = $1,553 Question: You have just been told that you only have $20,000 to invest. Which Projects would you invest in? What would be your total investment? And what would be the present worth of all of the projects you elect to invest in?
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
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