Question: Trailer Treasures Inc. is considering two projects and must do one of them. Project A requires an investment of $35,000. Estimated annual receipts for 5
Trailer Treasures Inc. is considering two projects and must do one of them. Project A requires an investment of $35,000. Estimated annual receipts for 5 years are $14,000; estimated annual costs are $4,500. Alternatively, Project B requires an investment of $70,000, has annual receipts for 5 years of $20,000, and has annual costs of $4,500. Assume both projects have a $10,000 salvage value and that MARR is 15%/year 1. What is the annual worth of Project A? 2. What is the annual worth of Project B? 3. Which project should be recommended? Why
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