Consider the cash flows for the following investment projects: (a) For Project A , find the value
Question:
(a) For Project A , find the value of X that makes the equivalent annual receipts equal the equivalent annual disbursement at i = 13%.
(b) Would you accept Project B at i = 15% based on the AE criterion?
Transcribed Image Text:
Project Cash Flows A B п -$5,500 $7,900 -$1,200 $1,500 $X -$1,500 $1,500 -$1,800 3 $1,500 -$2,100 4
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