Answer:
false
Explanation:
A mutually exclusive project is a project that if one occurs then the other project cannot occur also at the same time. Mutually exclusive projects are independent projects also
The problem wants to find out the cash flow per period that
Robert will make from his 40th birthday until his 65th
birthday. We know that he wants to get $500,000 by his 65th birthday
thus this is the future value of his money. To solve for the cash flow per
period, the equation is Future value = Annuity * [((1+i)^n-1)/i]. The n is the
number of payments Robert would make which is 25. The answer would be $3749.98.
Let's use the formula for compounding interest.
F = P(1+i)^n
where
P is the present worth
i is the interest
n is the number of years
F is the future worth or future value
Substituting the values,
P = 700; i = 0.04; n = 10
F = 700 (1+0.04)^10
F = 1,036.71
Hence, after 10 years, the future value would be 1,036.71.
