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Unformatted text preview: and all costs to the end of the year, the only exception being the sunk cost , the initial expenses needed to start the project. Sunk cost is referred to year zero. PV = n s k =0 ProFt k-Cost k (1 + i ) k Three types of present value analysis considered: Yes/no a speciFed project, choosing between alternative projects, picking investment options from a list of projects. Rate of return (ROR) : The value of the time value of money at which the present value of a project equals zero. 1...
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This note was uploaded on 05/11/2010 for the course CHE CHE 3171 taught by Professor Hjortso during the Spring '10 term at LSU.
- Spring '10