Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 50

For the following cash flows, the modified rate of return method uses a borrowing rate of 10%, and an investment rate is 12% per year. The correct computation for the present worth in year 0 is: a) 10,000 19,000( P / F ,12%,4)
B) 10,000 19,000( P / F ,12%,4) + 25,000 (P/F ,10%,5)
C) 25,000( P / F ,10%,5)
D) 10,000 19,000( P / F ,10%,4)