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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