The following problem is based on the following cash flows for alternatives A and B at an interest rate of 10% per year.



The present worth of alternative B is nearest:



(a) $?85,000

(b) $?750,000

(c) $?850,000

(d) $?950,000


CCB = -750,000 - 10,000/0.10
= $-850,000
Answer is (c) $?850,000

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