Question: Three mutually exclusive contracts A, B, and C are presented. Contract A is a 2 year project and costs S40.000 at beginning of each year.

Three mutually exclusive contracts A, B, and C are presented. Contract

Three mutually exclusive contracts A, B, and C are presented. Contract A is a 2 year project and costs S40.000 at beginning of each year. Contract B is a 3 years contract and requires $20,000 payment every 6 month beginning now(6 equal payments total each cycle). Contract C is a 6 year contract and requires S90,000 now and $145,000 four year from now. Assume all contracts can be renewed at the same conditions and an annual interest rate of 12%, compounded semiannually, using Present Worth Analysis: What is the present worth of project A What is the present worth of project B .What is the present worth of project C|

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