You are faced with making a decision on a large capital investment proposal. The capital investment amount is $640,000. The estimated annual revenue at the end of each year in the eight-year study period is $180,000. The estimated annual year-end expenses are $42,000 starting in year 1. These expenses begin decreasing by $4,000 per year at EOY 4 and continue decreasing through the EOY 8. Assuming a $20,000 market value at the end of year right and a MARR= 12% per year,

1. What is the present worth of this proposal?

2. What is your conclusion about the acceptability of this proposal?

A tattoo shop has the following revenue stream over a 5-year period: $9,000, $17,000, $19,000, $11,000 and $22,000.

3. What is the EUAW of this business (assume i = 12%).