4. Consider the cash flows for the following two projects: n A B 0 -$32,000 -$39,950 1 $6,600 $7,950 2 $9,500 $7,900 3 $8,150 $6,750 4 $X $6,925 5 $8,050 $9,000 6 $5,500 $9,650 (a) For project A, find the value of X that makes the equivalent annual receipts equal the equivalent annual disbursement at i=8% (b) Would you accept project B at i=6% based on AE criterion?

4. Consider the cash flows for the following two projects: n A B 0 -$32,000 -$39,950 1 $6,600 $7,950 2 $9,500 $7,900 3 $8,150 $6,750 4 $X $6,925 5 $8,050 $9,000 6 $5,500 $9,650 (a) For project A, find the value of X that makes the equivalent annual receipts equal the equivalent annual disbursement at i=8% (b) Would you accept project B at i=6% based on AE criterion?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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