Given the following data, calculate the present worth of the investment. First cost = $60,000 Project life
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First cost = $60,000 Project life = 10 years
Salvage value = $15,000 MARR= 25%
General price inflation = 4% per year
Annualcost1 = $4500inYear1and . inflating at 2.5% per year
Annual cost 2 = $7000 in Year 1 and inflating at 10.0% per year
Annual cost 3 = $10,000 in Year 1 and inflating at 6.5% per year
Annual cost 4 = $8500 in Year 1 and inflating at -2.5% per year
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...
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Related Book For
Engineering Economic Analysis
ISBN: 9780195168075
9th Edition
Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle
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