//Exa 4.3 clc; clear; close; //Investment proposal A : P1=-10000;//in Rs P2=3000;//in Rs P3=3000;//in Rs P4=7000;//in Rs P5=6000;//in Rs i=18;//in % per annum //Formula : (P/F,i,n) : 1/((1+i/100)^n) PW_A=P1+P2*1/((1+i/100)^1)+P3*1/((1+i/100)^2)+P4*1/((1+i/100)^3)+P5*1/((1+i/100)^4);//in RS disp(PW_A,"The present worth of A in RS. : "); //Investment proposal B : P1=-10000;//in Rs P2=6000;//in Rs P3=6000;//in Rs P4=3000;//in Rs P5=3000;//in Rs i=18;//in % per annum //Formula : (P/F,i,n) : 1/((1+i/100)^n) PW_B=P1+P2*1/((1+i/100)^1)+P3*1/((1+i/100)^2)+P4*1/((1+i/100)^3)+P5*1/((1+i/100)^4);//in RS disp(PW_B,"The present worth of B in RS. : "); disp("At i=18%, the present worth of proposal B is higher than that of proposal A. Therefore, select proposal B.")