Question: Clean machine Inc. has been presented with a proposal to open a new maintenance center. An initial investment of $251290 would have to be made
Clean machine Inc. has been presented with a proposal to open a new maintenance center. An initial investment of $251290 would have to be made to build and furnish the new facility. The annual operating cost is eliminated to be $25399. After a period of 14 years the center is expected to be shut down, and its property and equipment to be sold to be sold for $25129, During its operation, the facility is projected to generate an annual revenue of $53637. Assume 5% minimum attractive rate of return.
Calculate the net present worth of the investment ?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
