Please don't use excel and show all work.
AW, Project A ($) = - 500 x 0.1 + 75 = - 50 + 75 = 25
AW, Project B = - 300 x A/P(10%, X) + 75 = 25
- 300 x A/P(10%, X) = - 50
A/P(10%, X) = 1/6
0.1 / [1 - (1.1)-X]** = 1/6
[1 - (1.1)-X] = 0.6
(1.1)-X = 0.4
(1.1)X = 2.5
Taking natural logarithm on each side,
X x ln 1.1 = ln 2.5
X x 0.0953 = 0.9163
X = 9.61 years
**A/P(r%, N) = r / [1 - (1 + r)-N]
Please don't use excel and show all work. Consider two alternatives: B A $300 $500 $75...
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