Calculate annual worth.
Explanation of Solution
Investment (INV) is $850,000. Lowest range of revenue (LR) is $290,000 per year. Highest range of revenue (HR) is $$325,000 per year. Time period (n) is 5.
Annual worth (AW) for the lowest range of earning can be calculated as follows.
Annual worth of the project with the lowest expected earnings per year is $5,777.
Annual worth (AW) for the highest range of earning can be calculated as follows.
Annual worth of the project with highest expected earnings per year is $40,777.
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Chapter 18 Solutions
ENGINEERING ECONOMY W/CONNECT(LL)