Determine the present worth in year of the costs

Reference no: EM131004287

1. Calculate the annual worth (years 1 through 7) of Merchant Trucking Company's cash flow. Use an interest rate of 10% per year.
Year 0 1 2 3 4 5 6 7 Cash Flow, $ millions 450 -40 200 200 200 200 200 200.

2. The by-product department of Iowa Packing utilizes a cooker that has the cost stream shown. Determine the present worth in year 0 of the costs at an interest rate of 10% per year.

Year Cost ($1000)

0 850

1 300

2 400

3 400

4 400

5 500

Reference no: EM131004287

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