Solve with complete solution and draw the cash flow diagram A project your firm is considering for implementation has these estimated costs and revenues: an investment cost of $50,000; maintenance costs that start at $5,000 at the end of year (EOY) 1 and increase by $500 each year until year 10 ; savings of $20,000 per year (EOY 1–10); and finally a resale value of $35,000 at the EOY 10. If the project has a 10-year life and the firm’s MARR is 10% per year a) what is the present worth of the project? PW = $___ b) What is the Future Worth of this project? FW = $___ c) What is IRR ? IRR = ___ %
Solve with complete solution and draw the cash flow diagram
A project your firm is considering for implementation has these estimated costs and revenues: an investment cost of $50,000; maintenance costs that start at $5,000 at the end of year (EOY) 1 and increase by $500 each year until year 10 ; savings of $20,000 per year (EOY 1–10); and finally a resale value of $35,000 at the EOY 10. If the project has a 10-year life and the firm’s MARR is 10% per year
a) what is the present worth of the project? PW = $___
b) What is the Future Worth of this project? FW = $___
c) What is IRR ? IRR = ___ %
d) Is it a sound investment opportunity? YES or NO
e) Determine the Discounted Payback? ____ 5 years
Note: For equivalent worth, round off the final answer to whole number. For
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