ueor 110 TC a Compure altenatives A and Rusins the presenn w

ueor 110 TC (a) Compure altenatives A and Rusins the presenn worth method, end denenmine wich alnera you wuald choose

Solution

Project B has highest PW, so project B should be selected

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Year

A

B

C

PV factor @ 10%

PV A

PV B

PV C

0

-210

-110

-160

1

50

70

0

0.90909

45.45454545

63.63636364

0

2

60

70

0

0.82645

49.58677686

57.85123967

0

3

70

70

0

0.75131

52.59203606

52.59203606

0

4

80

70

300

0.68301

54.64107643

47.81094188

204.9040366

Total PV

202.2744348

221.8905812

204.9040366

Initial cost

210

110

160

PW

-7.725565194

111.8905812

44.90403661

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Year	A	B	C	PV factor @ 10%	PV A	PV B	PV C
0	-210	-110	-160
1	50	70	0	0.90909	45.45454545	63.63636364	0
2	60	70	0	0.82645	49.58677686	57.85123967	0
3	70	70	0	0.75131	52.59203606	52.59203606	0
4	80	70	300	0.68301	54.64107643	47.81094188	204.9040366
				Total PV	202.2744348	221.8905812	204.9040366
				Initial cost	210	110	160
				PW	-7.725565194	111.8905812	44.90403661