4. A software company has a projected cash flow for a business activity as follows: Year 0 = $ -150,000 Year 1 = $ 100,000 Year 2 = $ 150,000 Year 3 = $ 200,000 Year 4 = $ 250,000 Assuming each case flow occurs at the end of the year and an interest rate of 8%, What is the Equivalent uniform annual worth( EUAW) of this activity over the four year period? Equivalent uniform annual worth = Equivalent uniform annual Benefit - Equivalent uniform annual cost EUAW = EUAB - EUAC %3D

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Please answer question 4 with details on how to do it. Thank you. 

4. A software company has a projected cash flow for a business activity as follows:
Year 0 = $ -150,000
Year 1 = $ 100,000
Year 2 = $ 150,000
Year 3 = $ 200,000
Year 4 = $ 250,000
Assuming each case flow occurs at the end of the year and an interest rate of 8%, What is the
Equivalent uniform annual worth( EUAW) of this activity over the four year period?
Equivalent uniform annual worth = Equivalent uniform annual Benefit - Equivalent uniform annual cost
EUAW = EUAB – EUAC
Transcribed Image Text:4. A software company has a projected cash flow for a business activity as follows: Year 0 = $ -150,000 Year 1 = $ 100,000 Year 2 = $ 150,000 Year 3 = $ 200,000 Year 4 = $ 250,000 Assuming each case flow occurs at the end of the year and an interest rate of 8%, What is the Equivalent uniform annual worth( EUAW) of this activity over the four year period? Equivalent uniform annual worth = Equivalent uniform annual Benefit - Equivalent uniform annual cost EUAW = EUAB – EUAC
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