Katniss Everdeen decides which Mission to undertake.
Mission X has the initial cost of $1,000, the useful life of 7 years, the salvage value of $200, and terminal value of $100.
Mission Y has the initial cost of $1,200, the useful life of 12 years, the salvage value of $100, and the terminal value of $200.
The planning horizon is 10 years.
What is the present worth of Mission Y?
ASSUME 5%