project. The initial cost of the project is $120,000. It is expected that revenues will be $18,000 annually. There will be annual operating expenses of $17,000. At the end of the 9-year life of the project, there is a salvage value of $25,000. Use a MARR of 5%. Perform a PW (present worth) analysis. What is the PW of the project? Question 2 Part A: Choose the correct Cash Flow Diagram for this scenario from the following choices.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
The company you work for wants to start a new
project. The initial cost of the project is $120,000. It
is expected that revenues will be $18,000 annually.
There will be annual operating expenses of $17,000.
At the end of the 9-year life of the project, there is a
salvage value of $25,000. Use a MARR of 5%.
Perform a PW (present worth) analysis. What is the
PW of the project?
Question 2 Part A: Choose the correct Cash Flow
Diagram for this scenario from the following choices.
Option A
23,000
1
8
10,000
i = 5%
20,000
100,000
Option B
23,000
8.
10,000
i = 5%
20,000
Transcribed Image Text:The company you work for wants to start a new project. The initial cost of the project is $120,000. It is expected that revenues will be $18,000 annually. There will be annual operating expenses of $17,000. At the end of the 9-year life of the project, there is a salvage value of $25,000. Use a MARR of 5%. Perform a PW (present worth) analysis. What is the PW of the project? Question 2 Part A: Choose the correct Cash Flow Diagram for this scenario from the following choices. Option A 23,000 1 8 10,000 i = 5% 20,000 100,000 Option B 23,000 8. 10,000 i = 5% 20,000
1
8
10,000
i = 5%
20,000
100,000
20,000
Option C
23,000
1
8
10,000
i = 5%
100,000
20,000
Option D
23,000
1
8
10,000
i = 5%
100,000
$CANVAS COURSE_REFERENCE$/file_ref/g0f08ba:
download frd=1
Transcribed Image Text:1 8 10,000 i = 5% 20,000 100,000 20,000 Option C 23,000 1 8 10,000 i = 5% 100,000 20,000 Option D 23,000 1 8 10,000 i = 5% 100,000 $CANVAS COURSE_REFERENCE$/file_ref/g0f08ba: download frd=1
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