Question

Table below reports the present values of different investment projects at different interest rates in the future:

Project	3%	3.50%	4%	4.50%	5%	5.50%	6%
A	77.08	73.49	70.15	67.02	64.11	61.38	58.82
B	78.81	74.2	69.98	66.12	62.57	59.31	56.31
C	81.56	76.28	71.49	67.16	63.21	59.62	56.34
D	78.36	74.17	70.3	66.73	63.42	60.36	57.53
E	77.26	74.28	65.98	61.27	57.07	53.32	49.96
Probability	0.05	0.15	0.2	0.25	0.15	0.1	0.1

Calculate and show clearly your calculation for the expected present value of each project

Answer 1

PVs for each project:

A.67.299

B.66.544

C.67.6855

D.74.118

E.62.407