Final answer:
The question involves solving for unknown variables in a cash flow table and determining the NPW of projects using present worth calculations and plotting points on an NPW graph.
Step-by-step explanation:
The question pertains to the calculation of the present worth of cash flows for two projects, determining unknown variables in the cash flow table, and calculating the net present worth (NPW) at a Minimum Attractive Rate of Return (MARR) for project 1. To solve for X and Y, you would set up the equations based upon the given cash flows and solve for the unknowns using the present worth calculation formula:
Present Value (PV) = Future Value (FV) / (1+i)^n where i is the interest rate and n is the number of periods.
For terminal project balance, the future value of cash flows is calculated using the same formula, but adjusting for Project 1's specific cash flows and the provided MARR of 24%.
For the NPW plot, a, b, and c are values that signify specific points or slopes on the graph. They relate to the NPW of Project 1 and Project 2 at different points over the projects' lifespans. These values can be calculated by plotting the present worth of each project's cash flows over time and noting the NPW at the points in question on the vertical axis of a graph showing interest rates on the horizontal axis.