Question: 1. Consider the cash flows for the two alternatives assuming Interest rate 10%
n A B
0 $2500.00 5000.00
1 $1000.00 1800.00
2 1800.00 1800.00
3 1000.00 2000.00
4 400.00 2000.00
Suppose that project A and B are mutually exclusive which project would you select based on :
a) Present worth Analysis
b) Future worth analysis.