Margaret has a project with a $28,000 first cost that returns $5,000 per year over its 10-year

Fantastic news! We've Found the answer you've been seeking!

Question:

Margaret has a project with a $28,000 first cost that returns $5,000 per year over its 10-year life. It has a salvage value of $3,000 at the end of 10 years. If the MARR is 15 percent per year, what is the present worth of this project?

Related Book For answer-question

Fundamentals of Financial Management

ISBN: 9780273713630

13th Revised edition

Authors: James van Horne, John Wachowicz

See More Books

Posted Date: Jan 19, 2021 01:30 PM

See More Questions

Wilson, Inc., has a project with an expected cash inflow of $1 million at the end of Year 5. Wilson has a second project with an expected cash inflow of $200,000, to be received at the end of each...
Homeowners 1, 2, and 3 live at the end of a badly deteriorated road. Fixing the road would cost $C. The value to Homeowner 1 of fixing the road is $3,000, the value to Homeowner 2 is $5,000, and the...
McKee kin Corp. has a project with the following cash flows: What is the IRR of the project? What is happening here? Year Cash Flow S 20,000 2 -26,000 13,000
You are an audit supervisor of PricewaterhouseCoopers (PwC) and are planning the audit of your client, Blister Pharmaceuticals co. which manufactures and imports sanitary and cleaning products...
Distinguish among mandatory, permissive, and prohibited bargaining issues.
A two-dimensional Rankine half body, 8 cm thick, is placed in a water tunnel at 20°C. The water pressure far upstream along the body centerline is 120 kPa. What is the nose radius of the...
Two springs, having different stiffnesses $k_{1}$ and $k_{2}$ with $k_{2}>k_{1}$, are placed on either side of a mass $m$, as shown in Fig. 13.27. When the mass is in its equilibrium...
SITO Elevator Company manufactures small hydroelectric elevators with a maximum capacity of ten passengers. One of the direct materials used is heavy duty carpeting for the floor of the elevator. The...
You are the president of Silver Fiddle Construction (SFC), which specializes in building high-quality, customized homes in the Grand Junction, Colorado, area. You have just been hired by the Czopeks...
Many Arabic speakers tend to insert a vowel in their pronunciation of English words. The first column has examples from L2ers whose L1 is Egyptian Arabic; the second column has examples from L2ers...
Did you notice the use of 360 days representing a full year - as opposed to the alternative of 365 days in a year? Why do you think accountants use 360 instead of 365? Wouldn't that change our...
Rensch left two diamond rings for cleaning at Riddles Mall in Rapid City, South Dakota. Riddles had advertised free ring cleaning to the public. When Rensch returned for the rings, he found that a...
A tenants voluntary surrender of possession of leased premises. a. abandonment b. assignment c. condition d. covenant e. eviction f. lease g. lessee h. lessor i. periodic tenancy j. quiet enjoyment...
The requirement that a contract cannot violate the law. a. competent pa rty b. consideration c. divisible c ontract d. entire, or indivisible, contract e. executed c ontract f. executory c ontract g....
The promises exchanged by parties to a contract. a. competent pa rty b. consideration c. divisible c ontract d. entire, or indivisible, contract e. executed c ontract f. executory c ontract g....
Indicate whether each of the following statements is true or false by writing T or F in the answer column. Workers compensation laws are designed to ensure that all employees are paid fairly.
A clean-burning automobile engine emits about 5 lb (pounds) of C atoms in the form of CO2 molecules for every gallon of gasoline it consumes. The average American car is driven about 12,000 miles per...
Economic feasibility is an important guideline in designing cost accounting systems. Do you agree? Explain.
How did "Check 21" in the US create the opportunity for banks to save both time and money?
Describe how a company could determine its debt capacity by increasing its debt hypothetically until the probability of running out of cash reached some degree of tolerance.
Your friend, Jacques Fauxpas, suggests, "Firms with high fixed operating costs show extremely dramatic fluctuations in operating profits for any given change in sales volume." Do you agree with...
Consider the following observations: a. Fit the nonlinear regression model \[ y=\theta_{1} e^{\theta_{2} x}+\varepsilon \] to these data. Discuss how you obtained the starting values. b. Test for...
Reconsider the regression models in Problem 12.6, parts a-e. Suppose the error terms in these models were multiplicative, not additive. Rework the problem under this new assumption regarding the...
For the models shown below, determine whether it is a linear model, an intrinsically linear model, or a nonlinear model. If the model is intrinsically linear, show how it can be linearized by a...

Margaret has a project with a $28,000 first cost that returns $5,000 per year over its 10-year

Question:

Expert Answer:

Initial cash outflow 28000 Annual cash inflow 5000 MARR 15 Present worth of investment Pa... View the full answer

Fundamentals of Financial Management

Students also viewed these finance questions