Use the PW method at 8% per year to select up to 3 projects from the 4 available ones if no more than $20,000 can be invested. Estimated lives and annual net cash flows vary.
|
W
|
-5,000
|
1000
|
1700
|
1800
|
2,500
|
2,000
|
|
|
X
|
-8,000
|
900
|
950
|
1000
|
1,050
|
10,500
|
|
Y
|
-8,000
|
4000
|
3000
|
1000
|
500
|
500
|
2000
|
|
Z
|
-10,000
|
0
|
0
|
0
|
17,000
|
|
|