Compare the projects below using future worth analysis at i=16% per year. Apply LCM method, Write formula, use compound interest table for extracting factors, show your calculation step by step, and find final result. Draw cash flow diagram for both projects Project 1 Project 2 First cost Annual operating cost Salvage value Life, years -9000 -8000 -800 -800 700 1000 5 10
Compare the projects below using future worth analysis at i=16% per year. Apply LCM method, Write formula, use compound interest table for extracting factors, show your calculation step by step, and find final result. Draw cash flow diagram for both projects Project 1 Project 2 First cost Annual operating cost Salvage value Life, years -9000 -8000 -800 -800 700 1000 5 10
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Compare the projects below using future worth analysis at i=16% per
year. Apply LCM method, Write formula, use compound interest
table for extracting factors, show your calculation step by step, and
find final result.
Draw cash flow diagram for both projects
Project 1
Project 2
First cost
Annual operating cost
Salvage value
Life, years
-9000
-8000
-800
-800
700
1000
5
10](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F41a71aa8-201c-4a87-9a82-7aaf8bb30f20%2Fe86f0088-a786-4e72-b769-fea0aab128ab%2Ft2vndjb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Compare the projects below using future worth analysis at i=16% per
year. Apply LCM method, Write formula, use compound interest
table for extracting factors, show your calculation step by step, and
find final result.
Draw cash flow diagram for both projects
Project 1
Project 2
First cost
Annual operating cost
Salvage value
Life, years
-9000
-8000
-800
-800
700
1000
5
10
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