Homework Answers
Ans:- (C) 7795
Future worth of 1 alternative:-
FW = -8000*(F/P,12%,6) + 3000*(F/A,12%,5)*(F/P,12%,1) + 2000*(F/P,12%,1)
= (-8000* 1.973822) + (3000* 6.3528* 1.12) + (2000*1.12)
= -15790.58 + 21345.40 + 2240
= 7794.82
= 7795 (Rounded).
so future worth of alternative 1 is 7795. so option C is right answer.
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