Consider each of the after-tax cash flows shown in the table below. Suppose that projects B and C are mutually exclusive. Suppose also that the required service period is eight years and that the company is considering leasing comparable equipment with an annual lease expense of $3,000, payable at the end of each year for the remaining years of the required service period. Which project is a better choice at 15% ? Click the icon to view the cash flows for the projects. Click the icon to view the interest factors for discrete compounding when / 15% per year. The present worth of project B is Sthousand. (Round to one decimal place.) More Info Compound Single Payment Compound Amount Factor (F/P, I, N) Equal Payment Series Sinking Fund Factor (A/F, I, N) Amount Factor (F/A, I, N) More Info Present Worth Factor (P/A, i, N) Capital Recovery Factor (A/P, I, N) 1.1500 1.1500 1.0000 1.0000 0.8696 1.3225 2.1500 0.4651 1.6257 0.6151 с 1.5200 3.4725 0.2880 2.2832 0.4380 B -$7,000 - $5,000 1.7490 4.9934 0.2003 2.8550 0.3503 - 2,500 -2,000 2.0114 6.7424 0.1483 3.3522 0.2983 -2,000 -2,000 - 1.500 -2,000 2.3131 8.7537 0.1142 3.7845 0.2642 - 1,500 -2,000 2.6600 11.0668 0.0004 4.1604 0.2404 - 1,500 -2,000 3.0590 13.7268 0.0729 4.4873 - 1,500 -2,000 0.2220 -2,000 3.5179 16.7858 0.0506 4.7716 0.2006 4.0456 20.3037 0.0493 5.0188 0.1993 n 0 1 2 3 4 5 6 7 8 - X N 1 2 3 4 5 8 7 8 10 Present Worth Factor (P/F, i, N) 0.8606 0.7561 0.6575 0.5718 0.4972 0.4323 0.3759 0.3260 0.2843 0.2472

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Chapter1: Starting With Matlab
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Consider each of the after-tax cash flows shown in the table below. Suppose that projects B and C are mutually exclusive.
Suppose also that the required service period is eight years and that the company is considering leasing comparable equipment with an annual lease expense of $3,000, payable at the end of each year for the remaining
years of the required service period. Which project is a better choice at 15%?
Click the icon to view the cash flows for the projects.
Click the icon to view the interest factors for discrete compounding when i=15% per year.
The present worth of project B is $thousand. (Round to one decimal place.)
More Info
Capital
Single Payment
Compound
Amount
Factor
(F/P, i, N)
Equal Payment Series
Sinking Present
Fund
Worth
Factor
Factor
(A/F, i, N)
Compound
Amount
Factor
(F/A, i, N)
1.0000
More Info
Recovery
Factor
(A/P, i, N)
1.1500
(P/A, i, N)
1.1500
1.0000
0.8696
1.3225
2.1500
0.4651
1.6257
0.6151
B
с
1.5209
3.4725
0.2880
2.2832
0.4380
- $7,000
-$5,000
1.7490
4.9934
0.2003
2.8550
0.3503
- 2,500
-2,000
2.0114
6.7424
0.1483
3.3522
0.2983
-2,000
-2,000
- 1,500
-2,000
2.3131
8.7537
0.1142
3.7845
0.2642
- 1,500
-2,000
2.6600
11.0668
0.0904
4.1604
0.2404
- 1,500
-2,000
3.0590
13.7268
0.0729
4.4873
0.2229
- 1,500
-2,000
-2,000
3.5179
16.7858
0.0596
4.7716
0.2096
4.0456
20.3037
0.0493
5.0188
0.1993
n
0
1
2
3
4
5
6
7
8
X
N
1
2
3
4
5
6
7
8
9
10
Present
Worth
Factor
(P/F, i, N)
0.8896
0.7561
0.6575
0.5718
0.4972
0.4323
0.3759
0.3269
0.2843
0.2472
Transcribed Image Text:Consider each of the after-tax cash flows shown in the table below. Suppose that projects B and C are mutually exclusive. Suppose also that the required service period is eight years and that the company is considering leasing comparable equipment with an annual lease expense of $3,000, payable at the end of each year for the remaining years of the required service period. Which project is a better choice at 15%? Click the icon to view the cash flows for the projects. Click the icon to view the interest factors for discrete compounding when i=15% per year. The present worth of project B is $thousand. (Round to one decimal place.) More Info Capital Single Payment Compound Amount Factor (F/P, i, N) Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) Compound Amount Factor (F/A, i, N) 1.0000 More Info Recovery Factor (A/P, i, N) 1.1500 (P/A, i, N) 1.1500 1.0000 0.8696 1.3225 2.1500 0.4651 1.6257 0.6151 B с 1.5209 3.4725 0.2880 2.2832 0.4380 - $7,000 -$5,000 1.7490 4.9934 0.2003 2.8550 0.3503 - 2,500 -2,000 2.0114 6.7424 0.1483 3.3522 0.2983 -2,000 -2,000 - 1,500 -2,000 2.3131 8.7537 0.1142 3.7845 0.2642 - 1,500 -2,000 2.6600 11.0668 0.0904 4.1604 0.2404 - 1,500 -2,000 3.0590 13.7268 0.0729 4.4873 0.2229 - 1,500 -2,000 -2,000 3.5179 16.7858 0.0596 4.7716 0.2096 4.0456 20.3037 0.0493 5.0188 0.1993 n 0 1 2 3 4 5 6 7 8 X N 1 2 3 4 5 6 7 8 9 10 Present Worth Factor (P/F, i, N) 0.8896 0.7561 0.6575 0.5718 0.4972 0.4323 0.3759 0.3269 0.2843 0.2472
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