Question: Using the replacement chain (common-life) approach, can you type the net present value of the project you would choose (A or B)? ..... Assume the
Using the replacement chain (common-life) approach, can you type the net present value of the project you would choose (A or B)? ..... Assume the discount rate is 5%.
| Year | Project A | Project B |
| 0 | -125,185 | -66,737 |
| 1 | 24,407 | 23,529 |
| 2 | 26,849 | 28,693 |
| 3 | 24,433 | 26,580 |
| 4 | 20,701 | |
| 5 | 24,810 | |
| 6 | 24,571 |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
