CIVILEN 3080 Lecture Notes - Lecture 7: Mansfield, Accelerated Depreciation, Ddb Worldwide

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Project b would be preferred for marr if: Pw(i)a = -5300 + 900(p/f, i, 1) + 14000(p/f, i, 2) Pw(i)b = -7300 + 2200(p/f, i, 1) + 15500(p/f, i, 2) Pw(i)b-a = -2000 + 1300(p/f, i, 1) + 1500(p/f, i, 2) > 0. 2000 + (1300/1+i) + (1500/(1+i)2) > 0 i = 25% Aec = (65,000 23,000)(a/p, 6%, 6) + 0. 06(25,000) + 13,500. Salary r = 7% compounded daily = 7. 25% compounded annually. Total amount accumulated after 25 years = 3,750 + 150/yr. F = 3750(f/a, 7. 25%, 25) + 150(f/g, 7. 25%, 25) F = 3750(f/a, 7. 25%, 25) + 150(p/g, 7. 25%, 25)(f/p, 7. 25%, 25) Interest accumulated = what emily put in ,800 = ,000. F = [500(a/p, 12%, 5) + 1000] * (f/a, 12%, 5) F = 500(f/a, 12%, 6) + 500(f/a, 12%, 5) F = 1,000(f/a, 12%, 5) 500(f/p, 12%, 5) correct incorrect correct incorrect (should be a plus sign)

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