Consider each of the after-tax cash flows shown in Table P5.54.
(a)Compute the project balances for projects A and D as a function of the project year at i = 10%.
(b) Compute the net future-worth values at the end of the project for projects A and D at i = 10%.
(c) Suppose that projects B and C are mutually exclusive. Suppose also that the required service period is eight years and that the company is considering leasing comparable equipment with an annual lease expense of $3,000 payable at the end of each year for the remaining years of the required service period. Which project is a better choice?

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Project's Cash Flow 0$2.500 -$7000 $5,000 $5,000 -500 -500 4,000 650 6502.000 2000 650-1.500 2.000 -2,500 2,000 600 1500 2003,000 600,500 2,000 6001,500 2,000 3,000 2,000 3,000 2,000 300