Use the future worth formula please!!! ### Cash Flow Analysis for Investment Alternatives#### Problem Statement:Consider the cash flows for two investment alternatives, A and B, assuming an interest rate of 10%.| Year (n) | Cash Flow A | Cash Flow B ||----------|-------------|-------------|| 0 | $2,500.00 | $5,000.00 || 1 | $1,000.00 | $1,800.00 || 2 | $1,800.00 | $1,800.00 || 3 | $1,000.00 | $2,000.00 || 4 | $400.00 | $2,000.00 |#### Task:Suppose that projects A and B are mutually exclusive. Determine which project would be preferable based on the following criteria:1. **Future Worth Analysis**In this scenario, we'd calculate the future value of each project's cash flows at the given interest rate to find out which project yields a higher future worth, allowing for an informed decision on which project to select.

here we calculate the future worth and analysis the both project , and select the best project ,…

3) Consider the cash flows for the two alternatives assuming Interest rate 10% A B $2500.00 5000.00 1 $1000.00 1800.00 2 1800.00 1800.00 3 1000.00 2000.00 400.00 2000.00 Suppose that project A and B are mutually exclusive which project would you select based on: Future worth analysis.

3) Consider the cash flows for the two alternatives assuming Interest rate 10% A B $2500.00 5000.00 1 $1000.00 1800.00 2 1800.00 1800.00 3 1000.00 2000.00 400.00 2000.00 Suppose that project A and B are mutually exclusive which project would you select based on: Future worth analysis.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Use the future worth formula please!!!

### Cash Flow Analysis for Investment Alternatives

#### Problem Statement:
Consider the cash flows for two investment alternatives, A and B, assuming an interest rate of 10%.

| Year (n) | Cash Flow A | Cash Flow B |
|----------|-------------|-------------|
| 0 | $2,500.00 | $5,000.00 |
| 1 | $1,000.00 | $1,800.00 |
| 2 | $1,800.00 | $1,800.00 |
| 3 | $1,000.00 | $2,000.00 |
| 4 | $400.00 | $2,000.00 |

#### Task:
Suppose that projects A and B are mutually exclusive. Determine which project would be preferable based on the following criteria:

1. **Future Worth Analysis**

In this scenario, we'd calculate the future value of each project's cash flows at the given interest rate to find out which project yields a higher future worth, allowing for an informed decision on which project to select.

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