Re: jnu

Posted by neha. on May 08, 2012; 9:25am
URL: http://discussion-forum.276.s1.nabble.com/jnu-tp7463007p7538402.html

so assuming the rate of interest is effective,,, lets find out the accumulated value of both the projects,,

Project 1: 111 (already given)

Project 2:  55(1.11)^0.5 + 55 = 112.95,,, implying project 2 is better

OR it can also be done via Present value approach:

Project 1: 111(1.11)^-1 =100

Project 2: 55(1.11)^-0.5 + 55(1.11)^-1 = 101.75,,,  implying project 2 is better