A project your firm is considering for implementation has these estimated costs and revenues: an investment cost

Question:

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 end-of-year (EOY) one and increase by $1,000 for each of the next four years, and then remain constant for the following five years; savings of $20,000 per year (EOY 1-10); and finally a resale value of $35,000 at EOY 10. If the project has a 10-year life and the firm's is 10% per year, what is the present worth of the project? Is it a sound investment opportunity?
MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...