Determine the net present worth of a facility at an interest rate of 4% with a life span of 15 years provided the following: Initial cost = $1,500,000 Annual 0&M = $36,000 that increases $2000 per year. Additional maintenance at year 10 = $50,000 Salvage value = $2,750,000.

Determine the net present worth of a facility at an interest rate of 4% with a life span of 15 years provided the following: Initial cost = $1,500,000 Annual 0&M = $36,000 that increases $2000 per year. Additional maintenance at year 10 = $50,000 Salvage value = $2,750,000.

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 1BE: Average rate of return Determine the average rate of return for a project that is estimated to yield...

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Determine the net present worth of a facility at an interest rate of 4% with a life span of 15 years
provided the following:
Initial cost = $1,500,000
Annual O&M = $36,000 that increases $2000 per year.
Additional maintenance at year 10 = $50,000
Salvage value = $2,750,000.
%3D

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