A machine has an initial investment of $1,300,000, annual revenue will be $500,000 and the annual expenses will be $100,000 over five years study period. If the MARR=12% the PW of this machine is $141,920 means that this machine is acceptable. By how much (in percentage) can the initial investment be increased without causing the investor to reject the machine? a. 10.9% b. 8.9% O c. 20% d. 12.3% e. 6.7% f. 11.9%

A machine has an initial investment of $1,300,000, annual revenue will be $500,000 and the annual expenses will be $100,000 over five years study period. If the MARR=12% the PW of this machine is $141,920 means that this machine is acceptable. By how much (in percentage) can the initial investment be increased without causing the investor to reject the machine? a. 10.9% b. 8.9% O c. 20% d. 12.3% e. 6.7% f. 11.9%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 5P

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