SOLUTION: 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

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Question 181475: 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
Answer by vleith(2983) About Me  (Show Source):
You can put this solution on YOUR website!
Total revenues are 9*1200 = 10800
Total cost is 9000
Total Profit is 1800
SO the question is - Is 1800 over 9 years a 'better than 8%' compounded yearly return?
Or is 10800 ,ore oney after 8 years than just putting the 9000 in paper paying 8%
A+=+P%28%281+%2Br%29%29%5E%28n%29
A+=+9000%281+%2B+0.08%29%5E%289%29
A+=+9000%281.08%29%5E9
A+=+17991
So which would you want? 10800 or 17991 all other things equal?