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A Present Worth (PW) of a project is the period of time required to recover the

ID: 1164719 • Letter: A

Question

A Present Worth (PW) of a project is the period of time required to recover the cost of an investment from the net cash flow (profit or other benefits) produced by that investment for an interest rate of zero. the interest rate at which the equivalent benefits are equal to equivalent costs. ?the net e ha ent anual amount that represents the deference between equi alert annual disbursements ard equivalent anual receipts or astated MARR ite est rate. O the net equivalent amount at project time 0 that represents the difference between equivalent disbursements and equivalent receipts for a stated MARR interest rate. QUESTION7 $73915.00 $75,500.00 $750.00 None of the options listed O

Explanation / Answer

Present worth of a project is

Net equivalent amount at project time 0 that represents the difference between equivalent disbursement and equivalent receipts for a started MARR interest rate.

73915 is correct

Future value= 55000(1+0.03)^10= 73915

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