# Reconsider the data of Problem 31. Data from Problem 31 The following three investment opportunities are available.

## Question:

Reconsider the data of Problem 31.

**Data from Problem 31**

The following three investment opportunities are available. The returns for each investment for each year vary, but the first cost of each is $20,000. Based on a future worth analysis, which investment is preferred? MARR is 9 percent/year.

**a.** For each of the investments, calculate the average annual return without considering the time value of money.

**b.** Describe the pattern exhibited by the returns for each investment with respect to your result in part (a).

**c.** Are your results from (b) and the FWs from Problem 31 consistent with the concept of the time value of money?

Explain.

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**Related Book For**

## Principles Of Engineering Economic Analysis

**ISBN:** 9781118163832

6th Edition

**Authors:** John A. White, Kenneth E. Case, David B. Pratt