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Project P Project Q First cost, $ -55,000 -95,000 -5,000 year 1, increasing by $1000 Annual cost, -9,000 S/year per year Salvage value, $ Life, years nil 4,000 2 4

Project P Project Q First cost, $ -55,000 -95,000 -5,000 year 1, increasing by $1000 Annual cost, -9,000 S/year per year Salvage value, $ Life, years nil 4,000 2 4

Essentials Of Investments
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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Two mutually exclusive projects have the estimated cash flows shown. Use a present worth analysis to determine which should be selected at an interest rate of 10% per year.

Project P Project Q First cost, $ -55,000 -95,000 -5,000 year 1, increasing by $1000 Annual cost, -9,000 S/year per year Salvage value, $ Life, years nil 4,000 2 4
Transcribed Image Text:Project P Project Q First cost, $ -55,000 -95,000 -5,000 year 1, increasing by $1000 Annual cost, -9,000 S/year per year Salvage value, $ Life, years nil 4,000 2 4
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