Project Cash Flows B D O -$3,500 -$5,800 -$5,200 -$40,000 1 $600 $3,000 -$2,000 $12,000 2 $600 $2,000 $4,000 $14,000 3 $1,000 $1,000 $2,000 $18,000 4 $1,000 $500 $4,000 $18,000 5 $1,000 $500 $2,000 $14,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Consider the following sets of investment projects:

Compute the equivalent annual worth of each project at i = 10%, and determine the acceptability of each project.

Project Cash Flows
B
D
O -$3,500 -$5,800 -$5,200
-$40,000
1
$600
$3,000 -$2,000
$12,000
2
$600
$2,000
$4,000
$14,000
3
$1,000
$1,000
$2,000
$18,000
4
$1,000
$500
$4,000
$18,000
5
$1,000
$500
$2,000
$14,000
Transcribed Image Text:Project Cash Flows B D O -$3,500 -$5,800 -$5,200 -$40,000 1 $600 $3,000 -$2,000 $12,000 2 $600 $2,000 $4,000 $14,000 3 $1,000 $1,000 $2,000 $18,000 4 $1,000 $500 $4,000 $18,000 5 $1,000 $500 $2,000 $14,000
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