What is present worth of this investment

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Reference no: EM132061412

1. This investment of $50000 has a 10 year useful life and $5000 salvage value at the end of the useful life. The annual benefit is $10000 for the first three years, and decreases by $1000 per year after that ($9000 for year 4 and so on). What is the EUAB of this investment if interest rate (i) is 10%.

A. $202

B. -$172

C. $23

D. $375

2. You spend $1000 and in return receive three payments of $800-at the end of the 2nd, 4th, and 6th year. What is the present worth of this investment if th interest rate is 10% per year, compounded continuously

A. $460

B. $750

C. $640

D. $540

Reference no: EM132061412

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