Question: 12. Consider the following three projects. Period T-0 Proiect. A Project B Project T=1 (55.000) (59.000) (54,000) T-2 $2,000 $1.500 5900 SI 200 $2.500 $900
12. Consider the following three projects. Period T-0 Proiect. A Project B Project T=1 (55.000) (59.000) (54,000) T-2 $2,000 $1.500 5900 SI 200 $2.500 $900 T-3 $1,800 T-4 $2,500 5900 $1,800 $2.500 $2.500 T-3 $4.800 $4.500 $2.500 When you have only $18,000 to support the above projects, which project (or projects) should be chosen under NPV method and explain WHY? Use 8 percent discount rate. (8 points) 13. You deposit $98,000 today in an account that pays an annual rate of 8 percent interest. You plan to withdraw $98,000 from this account at the end of the 10 year. You will make no additional deposits or withdrawals from this account. How much will be left in your account at the end of the 15 year? Assume that the interest is compounded quarterly. (6 points)
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