Question

Consider the following investment project. Calculate the net future worth of this investment at 14​% and determine the acceptability of the investment.

n	An
0	−​$48,000
1	32,200
2	33,200
3	20,700
4	20,700
5	25,000

The net future worth of this investment will be $___________ thousand.​ (Round to one decimal​ place.)

Answer 1

Solution -

Year	Cash Flow ($)	Compound factor at 14% (for value use compound interest table )	Computed cash flow ($)
	(A)	(B)	(A) x (B)
0	-48,000	1.925	-92,400
1	32,200	1.689	54,358.8
2	33,200	1.482	49,202.4
3	20,700	1.300	26910
4	20,700	1.140	23,598
5	25,000	1.000	25,000
		Future worth ($) =	86669 $ (Round to one decimal place)

Here FW is Positive so Investement is Acceptable

NOTE - DP UP VOTE HAVE A NICE DAY