4 Year Project Mid-Year Factors Project Year Constant Dollars (2.55%) Current Do
ID: 1247691 • Letter: 4
Question
4 Year Project
Mid-Year Factors
Project
Year
Constant Dollars (2.55%)
Current Dollars (4.90%)
1
0.9875
0.9764
2
0.9629
0.9308
3
0.9390
0.8873
4
0.9156
0.8458
Alternative
Project
Total Cost
Discount Factor
Present Value of
Year
Constant FY $
Type
Value
Annual Cost
1
$174,000.00
MOY
0.9875
$171,825.00
2
$174,000.00
MOY
0.9629
$167,544.60
3
$174,000.00
MOY
0.9390
$163,386.00
4
$174,000.00
MOY
0.9156
$159,314.40
Total
$696,000.00
NPV =
$662,070.00
4 Year Project
Mid-Year Factors
Project
Year
Constant Dollars (2.55%)
Current Dollars (4.90%)
1
0.9875
0.9764
2
0.9629
0.9308
3
0.9390
0.8873
4
0.9156
0.8458
Explanation / Answer
Yes, your calculations are perfect. Hence, Option D is the correct answer.
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