Consider the following investment project: Suppose, as shown in the preceding table, that the companys reinvestment opportunities
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Suppose, as shown in the preceding table, that the companys reinvestment opportunities (that is, its MARR) change over the life of the project. For example, the company can invest funds available now at 9% for the first year, 12% for the second year, and so forth. Calculate the net present worth of this investment, and determine its acceptability.
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A, п -$8,500 $4,400 12% $4,400 10% 2 $1,500 13% $3,500 4 12% $4,300 10%
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