Question: An employee gets some money as a mid-year bonus. The employee is considering an alternative investment using the bonus. The initial capital of the investment
An employee gets some money as a mid-year bonus. The employee is considering an alternative investment using the bonus. The initial capital of the investment is $ 18,000 with an annual profit of $ 2,000. The alternative investment is 5 years old and has no salvage value at the end of that year. If the MARR set by the person is 10%, determine:
a) is the investment worth it?
b) if the initial investment capital changes to $ 10,000, will the investment decision change from the initial decision (decision in answer a)?
c)if the profit per year changes to $ 1000, will the investment decision change from the initial decision (decision a)
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