The capital cost of a certain project is $625,000 and the annual expenses are $33,000. If the study period is 11 years, what is the present worth of this investment assuming 7.25% interest rate? O a. -$380,596 O b. -$244,404 O c. $380,596 Od.-$869,404 e. $869,404

The capital cost of a certain project is $625,000 and the annual expenses are $33,000. If the study period is 11 years, what is the present worth of this investment assuming 7.25% interest rate? O a. -$380,596 O b. -$244,404 O c. $380,596 Od.-$869,404 e. $869,404

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 18EA: Consolidated Aluminum is considering the purchase of a new machine that will cost $308,000 and...

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Question

The capital cost of a certain project is $625,000 and the annual expenses are $33,000. If the study
period is 11 years, what is the present worth of this investment assuming 7.25% interest rate?
O a. -$380,596
O b. -$244,404
O c. $380,596
O d. -$869,404
O e. $869,404

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