Years: Cash flows ( Short) Cash flows (long) 0 -1500-2600

2
Years: Cash flows( Short) Cash flows (long) 0 -1500 -2600 1 +950 +850 2 +950 +850 3 +950 +850 4 +850 5 +850 6 +850 Determine the EAA of each project using the next slide… FOR THE Equivalent Annual Annuity ASSIGNMENT the cost of

description

Years: Cash flows ( Short) Cash flows (long) 0 -1500-2600 1 +950+850 +950+850 +950+850 +850 +850 - PowerPoint PPT Presentation

Transcript of Years: Cash flows ( Short) Cash flows (long) 0 -1500-2600

Page 1: Years:      Cash flows ( Short)       Cash flows (long) 0            -1500-2600

Years: Cash flows( Short) Cash flows (long)

0 -1500 -2600

1 +950 +850

2 +950 +850

3 +950 +850

4 +850

5 +850

6 +850

Determine the EAA of each project using the next slide…

FOR THE Equivalent Annual Annuity ASSIGNMENT the cost of capital to be used is 8%.

Page 2: Years:      Cash flows ( Short)       Cash flows (long) 0            -1500-2600