Question: Consider two investments, A and B, with the sequences of cash flows given in Table P7.13. TABLE P7.I3 (a) Compute i* for each investment. (b)

Consider two investments, A and B, with the sequences of cash flows given in Table P7.13.
TABLE P7.I3

(a) Compute i* for each investment.
(b) Plot the present-worth curve for each project on the same chart, and find the interest rate that makes the two projects equivalent.

Net Cash Flow Project AProject B -$30,000 11,000 10.000 10,000 8,000 5,000 -$30,000 2,000 6,000 10,000 24,000 26,000 0

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