Project A                   Project B                       Year                       Cash Flow                       Year                       Cash Flow                       0                       -1,000                       0                       -2,000                       1                       900                       1                       900                       2                       900                       2                       900                       3                       900                       3                       900                       4                       900                       4                       900                       5                         5                       900                       6                         6                       900                  If the discount rate is 12% and you have to choose between these two projects, what is the equivalent annual series of the best project? Question 4 options:   $413.55   $440.78   $500.00   $570.77   $584.53

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question

Project A


    

            

Project B


        

            

Year


        

            

Cash Flow


        

            

Year


        

            

Cash Flow


        

            

0


        

            

-1,000


        

            

0


        

            

-2,000


        

            

1


        

            

900


        

            

1


        

            

900


        

            

2


        

            

900


        

            

2


        

            

900


        

            

3


        

            

900


        

            

3


        

            

900


        

            

4


        

            

900


        

            

4


        

            

900


        

            

5


        
 
            

5


        

            

900


        

            

6


        
 
            

6


        

            

900


        
       


If the discount rate is 12% and you have to choose between these two projects, what is the equivalent annual series of the best project?

Question 4 options:

 

$413.55

 

$440.78

 

$500.00

 

$570.77

 

$584.53

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