**1. The problem statement, all variables and given/known data**

Alternative:

immediate investment: $130,000

first-year expenditure: $6,000

the increase $2,000 and 36,000 annually.

The economic life of the project is forecast to be 12 years

Determine the rate of return of this Plan?

**2. Relevant equations**

PW = -130,000 + 36,000(P/A, i%, N) – G(A/G, i%, N) - 6000(P/A, i%, N)

**3. The attempt at a solution**

At i = 10 %

PW = -130,000 + 36,000(P/A, 10%, 12) – G(A/G, 10%, 12) - 6000(P/A, 10%, 12)

Is the PW equation right?