Compare the projects below using future worth analysis at I = 12% per year a) What is the Future Worth for Project A? b) What is the Future Worth for Project B? c) Based on the Future Worth at I = 12%, which Project would you select? First cost, $ Annual cost, $/year Salvage value, $ Life, years $65,000.00 Project A Project B ($65,000) ($75,000) ($8,500) ($12,000) $7,000 $6,000 4 8

Essentials Of Investments
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Compare the projects below using future worth analysis at I = 12% per year
a) What is the Future Worth for Project A?
b) What is the Future Worth for Project B?
c) Based on the Future Worth at I = 12%, which
Project would you select?
First cost, $
Annual cost, $/year
Salvage value, $
Life, years
$65,000.00
Project A
Project B
($65,000) ($75,000)
($8,500)
($12,000)
$7,000
$6,000
4
8
Transcribed Image Text:Compare the projects below using future worth analysis at I = 12% per year a) What is the Future Worth for Project A? b) What is the Future Worth for Project B? c) Based on the Future Worth at I = 12%, which Project would you select? First cost, $ Annual cost, $/year Salvage value, $ Life, years $65,000.00 Project A Project B ($65,000) ($75,000) ($8,500) ($12,000) $7,000 $6,000 4 8
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