An engineering project has an investment amount of $126379 with an annual net profit of $53949 for 6 years. If the interest rate and average inflation rate are 15% and 6%, respectively, calculate the present worth of the entire period.

An engineering project has an investment amount of $126379 with an annual net profit of $53949 for 6 years. If the interest rate and average inflation rate are 15% and 6%, respectively, calculate the present worth of the entire period.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 4BE: Internal rate of return A project is estimated to cost 463,565 and provide annual net cash flows of...

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An engineering project has an investment amount of $126379 with an annual net profit of $53949 for 6
years. If the interest rate and average inflation rate are 15% and 6%, respectively, calculate the present worth
of the entire period.

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