Question: + Chapter 9 Exercises 2,3,4,7,10,11 & Problems 23,25 Question 7 of 8 -11 WIUVO Current Attempt in Progress Bill Zimmerman is evaluating two new business
+ Chapter 9 Exercises 2,3,4,7,10,11 & Problems 23,25 Question 7 of 8 -11 WIUVO Current Attempt in Progress Bill Zimmerman is evaluating two new business opportunities. Each of the opportunities shown below has a 15-year life. Bill uses a 11% discount rate. Equipment purchase and installation Annual cash flow Equipment overhaul in year 6 Equipment overhaul in year 8 Option 1 $70,200 $28.600 $4,950 Option 2 $81,980 $30,840 $6,000 19 384 1.56 2.174 20 3.17 Click here to view the factor table. 3.49 3811 4.0 4. (a) 471 4 5.00 Calculate the net present value of the two opportunities. (Round present a factor calculations to 4 decimal places. e. 1.2514 and the final answers to decimal places es. 59.991.) . Option 1 Option 2 5531 Net present value e Textbook and Media
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