Problem 5. Given MARR = 10 %, which of these cash flows you would prefer? Justify your answer. Year 0 1 Cash-Flow A -1000 +1320 Cash-Flow B +1000 -1320
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For Cash-Flow A: PV = -1000 / (1 + 0.10)^0 = -1000 For Cash-Flow B: PV = 1000 / (1 + 0.10)^0 - 1320 / (1 + 0.10)^0 = 1000 - 1320 = -320 Show more…
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