Q2) A company invests in one of three altematives which has the cash flow as represent in the table below, suggest the best Project using the Equivalent Annual Worth Method if you know that the interest rate is (12%). Purchasing Salvage (CU/ equipment value (CU) 400 000 Investment cost revenue Life Details amount (CU/year) (year) (CU) (CU) 2200 000 year) 100 000 Project 1 Project 2 Project 3 2800 000 400 000 300 000 4 500 000 450 000 1900 000 600 000 150 000 300 000 3 500 000 500 000 175 000 4
Q2) A company invests in one of three altematives which has the cash flow as represent in the table below, suggest the best Project using the Equivalent Annual Worth Method if you know that the interest rate is (12%). Purchasing Salvage (CU/ equipment value (CU) 400 000 Investment cost revenue Life Details amount (CU/year) (year) (CU) (CU) 2200 000 year) 100 000 Project 1 Project 2 Project 3 2800 000 400 000 300 000 4 500 000 450 000 1900 000 600 000 150 000 300 000 3 500 000 500 000 175 000 4
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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