Project Balances A B C -$1,000 -$1,000 -$1,000 1 -S800 -$680 -$530 -$600 -$302 $X 3 -$400 -$57 -$211 4 -$200 $233 - $89 $0 $575 $0 Interest rate used 0% 18% 12%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Consider the following project-balance profiles for proposed investment projects, where the project-balance figures are rounded to the nearest dollar:

(a) Compute the net present worth of each investment.
(b) Determine the project balance at the end of period 2 for Project C if
A2 = $500.
(c) Determine the cash flows for each project.
(d) Identify the net future worth of each project.

Project Balances
A
B
C
-$1,000
-$1,000
-$1,000
1
-S800
-$680
-$530
-$600
-$302
$X
3
-$400
-$57
-$211
4
-$200
$233
- $89
$0
$575
$0
Interest rate used
0%
18%
12%
Transcribed Image Text:Project Balances A B C -$1,000 -$1,000 -$1,000 1 -S800 -$680 -$530 -$600 -$302 $X 3 -$400 -$57 -$211 4 -$200 $233 - $89 $0 $575 $0 Interest rate used 0% 18% 12%
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