Construct a choice table for interest rates

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Reference no: EM132028211

Three mutually exclusive projects are being considered:

	A	B	C
Initial cost	$100	$15	$200
Annual benefit	$10	$17.62	$55.48
Useful life	Infinite	20 years	5 years

a) Construct a choice table for interest rates from 0%-100%. Also - provide a plot of either PW or EAW as function of i.

b) The firm wants 8% rate of return on investments. Which equipment should be purchased?

Reference no: EM132028211

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