CE40-2/E01

CE/2
M2-CPR
CLASS PRODUCED REVIEWER

PRESENT WORTH (PW) METHOD

Project A:
𝑃𝑊 = −$150000 + ($28000 − $1000)(𝑃⁄𝐴 , 12%, 10) + $20000(𝑃⁄𝐹 , 12%, 10)
(1 + 𝑖)𝑛 − 1
𝑃𝑊 = −$150000 + $27000 ( ) + $20000((1 + 𝑖)−𝑛)
𝑖(1 + 𝑖)𝑛
(1 + 0.12)10 − 1
𝑃𝑊 = −$150000 + $27000 ( ) + $20000((1 + 0.12)−10 )
0.12(1 + 0.12)10
𝑷𝑾 = $𝟖𝟗𝟗𝟓. 𝟒𝟗

Project B:
𝑃𝑊 = −$85000 + ($16000 − $550)(𝑃⁄𝐴 , 12%, 10) + $10000(𝑃⁄𝐹 , 12%, 10)
(1 + 𝑖)𝑛 − 1
𝑃𝑊 = −$85000 + $15450 ( ) + $10000((1 + 𝑖)−𝑛 )
𝑖(1 + 𝑖)𝑛
(1 + 0.12)10 − 1
𝑃𝑊 = −$85000 + $15450 ( ) + $10000((1 + 0.12)−10 )
0.12(1 + 0.12)10
𝑷𝑾 = $𝟓𝟓𝟏𝟓. 𝟔𝟖

Project C:
𝑃𝑊 = −$75000 + ($15000 − $500)(𝑃⁄𝐴 , 12%, 10) + $6000(𝑃⁄𝐹 , 12%, 10)
(1 + 𝑖)𝑛 − 1
𝑃𝑊 = −$75000 + $14500 ( ) + $6000((1 + 𝑖)−𝑛 )
𝑖(1 + 𝑖)𝑛
(1 + 0.12)10 − 1
𝑃𝑊 = −$75000 + $14500 ( ) + $6000((1 + 0.12)−10 )
0.12(1 + 0.12)10
𝑷𝑾 = $𝟖𝟖𝟔𝟎. 𝟎𝟕