Question: Please show formulas to this answer. How is the PVF @ 9% calcualted? And how is PVAF (9%,4)=3.24 calcualted? Year Cash flows project S |PVF@9%

 Please show formulas to this answer. How is the PVF @

Please show formulas to this answer. How is the PVF @ 9% calcualted? And how is PVAF (9%,4)=3.24 calcualted?

Year Cash flows project S |PVF@9% Present value (15,000) 1.000(15,000.00) 0.917 $6,422.02 0.842 $ 10,100.16 $ (12,625.20 0.772 $ 5,405.28 0.708 $ 8,501.10 8 Total present value of cash outflows $ 2,803.37 3.240 $865.32 0 7,000 12,000 (15,000)0.842 4 2 2 7,000 12,000 4 9 |PVAF(9%,4 10 Equivalent annual cost (EAC 12 Year Cash flows proiect L |PVF@9% Present value 13 $ 14 1 15 2$ 16 3 $ 17 4 5,200 5,200 5,200 5,200 18 Total present value of cash outflows $ 1,846.54 (15,000) 1.000(15,000.00) 4,770.64 0.842 $ 4,376.74 0.772$ 4,015.35 0.708 $ 3,683.81 0.917S4,7 19 pVAF(9%,4 20 Equivalent annual cost (EAC 21 22 Correct option is Project L $569.97 3.240 $ 569.97

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