![Year Net cash Flow PVF 0 (110,000.00) Discounted Cash Flow Year Net cash Flow PVF Discounted Cash Flow (20,000.00) 0.89285714](//img.homeworklib.com/images/3ac4e73b-cb9d-41e2-8ab2-dcb6a71d5662.png?x-oss-process=image/resize,w_560)
Year Net cash Flow PVF 0 (110,000.00) Discounted Cash Flow Year Net cash Flow PVF Discounted Cash Flow (20,000.00) 0.892857143 (20,000.00) 0.797193878 (20,000.00) 0.711780248 (20,000.00) 0.635518078 (20,000.00) 0.567426856 (20,000.00) 0.506631121 (20,000.00) 0.452349215 (20,000.00) 0.403883228 (20,000.00) 0.360610025 (20,000.00) 0.321973237 (20,000.00) 0.287476104 (20,000.00) 0.256675093 (20,000.00) 0.22917419 (20,000.00) 0.204619813 (20,000.00) 0.182696261 (20,000.00) 0.163121662 (110,000.00) (17,857.14) (15,943.88) (14,235.60) (12,710.36) (11,348.54) (10,132.62) (9,046.98) (8,077.66) (7,212.20) (6,439.46) (5,749.52) (5,133.50) (4,583.48) (4,092.40) (3,653.93) (3,262.43) 0 $ (100,000.00) 1 55,000.00) 0.892857143 2 $ (50,000.00) 0.797193878 3 $ (45,000.00) 0.711780248 4 $(40,000.00) 0.635518078 5 $(35,000.00) 0.567426856 6 $ (30,000.00) 0.506631121 7 $ (25,000.00) 0.452349215 8 $ (20,000.00) 0.403883228 (100,000.00) (49,107.14) (39,859.69) (32,030.11) (25,420.72) (19,859.94]) (15,198.93) (11,308.73) (8,077.66) 4 8 10 12 13 14 15 16 (249,479.72) (300,862.94) Discounted Cash Flow in Year t Net Cashflow in Year t/(1+MARR)At) Using Present worth analysis, we see that method A's present worth is highest, in terms of lowest NPV of cost. Therefore Method A is better method