Compare the projects below using future worth analysis at I = 12% per year a) What is the Future Worth for Project A? b) What is the Future Worth for Project B? c) Based on the Future Worth at I = 12%, which Project would you select? First cost, $ Annual cost, $/year Salvage value, $ Life, years $65,000.00 Project A Project B ($65,000) ($75,000) ($8,500) ($12,000) $7,000 $6,000 4 8

Compare the projects below using future worth analysis at I = 12% per year a) What is the Future Worth for Project A? b) What is the Future Worth for Project B? c) Based on the Future Worth at I = 12%, which Project would you select? First cost, $ Annual cost, $/year Salvage value, $ Life, years $65,000.00 Project A Project B ($65,000) ($75,000) ($8,500) ($12,000) $7,000 $6,000 4 8

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 10P: Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year...

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