Two options have the following disbursement schedules. If the TRAM is 6%, which option is best? Use the net present value analysis method. Show your calculations in your working document. Change the values of B for periods 4 and 5 to -400 and -500 respectively.

 

Transcribed Image Text:

Year 012345 0 А A -$1,300 0-$100 -200 -300 0 0 0 B В 0 $1,300 400 500 $1,500 Year 012345 0 А A -$1,300 0-$100 -200 -300 0 0 0 B В 0 $1,300 400 500 $1,500

Answer rating: 100% (QA)

To determine which option is best using the net present value NPV analysis method we need to calcula... View the full answer