document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=181475>Question 181475</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A project will have annual cash flows of $1200 for nine years.  It costs $9000 to do.  Is this a good project to do if the cost of money is 8%?  Show the calculations that support your answer </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #136096 by </B><A HREF=/tutors/aboutme.mpl?userid=vleith><B>vleith(2983)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=vleith><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=136096\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Total revenues are 9*1200 = 10800<BR>\n" );
document.write( "Total cost is 9000<BR>\n" );
document.write( "Total Profit is 1800\r<BR>\n" );
document.write( "\n" );
document.write( "SO the question is - Is 1800 over 9 years a 'better than 8%' compounded yearly return?\r<BR>\n" );
document.write( "\n" );
document.write( "Or is 10800 ,ore oney after 8 years than just putting the 9000 in paper paying 8%\r<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A+=+P%28%281+%2Br%29%29%5E%28n%29 ALIGN=MIDDLE  ALT=\"A+=+P%28%281+%2Br%29%29%5E%28n%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A+=+9000%281+%2B+0.08%29%5E%289%29 ALIGN=MIDDLE  ALT=\"A+=+9000%281+%2B+0.08%29%5E%289%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A+=+9000%281.08%29%5E9 ALIGN=MIDDLE  ALT=\"A+=+9000%281.08%29%5E9\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A+=+17991 ALIGN=MIDDLE  ALT=\"A+=+17991\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
document.write( "\n" );
document.write( "So which would you want? 10800 or 17991 all other things equal?<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );