Question: 1. (25 points) Cash ows for two projects over 5 years are given below: Year Project A Project B 0 -$15,000 -$10,000 $1,000 $2,000 $1,000


1. (25 points) Cash ows for two projects over 5 years are given below: Year Project A Project B 0 -$15,000 -$10,000 $1,000 $2,000 $1,000 $2,000 $1,000 $2,000 $1,000 $2,000 $1,000 $2,000 @kawrl MARR : 10% (a) (10 points} Draw the cash ow diagram for each project. (b) (10 points) Calculate the net present worth for each project over the 5 years. (c) (5 points) Based on your analysis, which project would you choose and why
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
