Question: Refer to Problem 5.25 and answer the following questions. (a) Plot the future worth for each project as a function of the interest rate (0%
(a) Plot the future worth for each project as a function of the interest rate (0% to 50%).
(b) Compute the project balance of each project at i = 12%.
(c) Compare the terminal project balances calculated in (b) with the results obtained in Problem 5.25(a). Without using the interest factor tables, compute the future worth on the basis of the project balance concept.
Problem 5.25
Consider the following investment projects using the information in Table P5.25.
(a)Compute the future worth at the end of life for each project at i = 12%.
(b)Determine the acceptability of each project.
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Project's Cash Flow 0 $2,200 $4,500-$3,200 $5,400 $7.200 -500 900 1.500 4 3,200 -700 1,500 -4,000 5,000 6,000 3,000 1200 ,500 1,000 3,000 3,000 2,500 4,000 7,000 2,000 2000 3000 2800 2.400 3.500
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