Whales Inc. just invested in revolutionary electrical shock technology that is guaranteed to exterminate any flying insect. The equipment cost $16,250 and has a four-year usable life. The equipment will generate $6,500 in revenue each year. The cost of operating the machine is projected to be $500 the first year and $250 per year after that. When the equipment is disposed of, it is estimated to be worth $800. The company set the MARR at 8%.

a. The Net Future Worth of this investment = $ Blank 1

b. Is this purchase a wise investment (type only Yes or No) = Blank 2

Note: Round final answer in two decimal places.

Answer rating: 100% (QA)

The cash Aow for Four year as showno yeare o 16 25o Year 1 65 00 500 6000 ... View the full answer