Example 3 Investment proposals A and B have the net cash flows as Proposal End of years 1 vevend A (S) B (S) -10,000 3,000 -10,000 6,000 3,000 6.000 7,000 6.000 3,000 3,000 Compare the present worth of A with that of B at i 18%. Which proposal should be selected? Solution hint To obtain the present worth, use the following formula P = - F(P/F,i,n) %3D single-payment present worth factor

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