Chapter 04, Problem 004 (Video Solution) DuraTech Manufacturing is evaluating a

Question

Chapter 04, Problem 004 (Video Solution) DuraTech Manufacturing is evaluating a process improvement project. The estimated receipts and disbursements associated with the project are shown below. MARR is 10%/year. End of Year Receipts Disbursements $5,300 $150 $0 $300 $2,300 $350 $3,000 $620 $2,500 $1,190 $1,700$1,490 0 2 3 4 Click here to access the TVM Factor Table Calculator Part a What is the present worth of this investment? $ Carry all interim calculations to 5 decimal places. Round entry to two decimal places. The tolerance is ±5 By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER Earn Maximum Points available only if you answer this question correctly in your first attempt.

Explanation / Answer

Present Worth:

Present worth = -$738.80

Year Receipts-Disbursements PVF@10% Present worth 0 -5300 1 -5300 1 150 0.90909 136.3635 2 1950 0.82645 1611.5775 3 2380 0.75131 1788.1178 4 1310 0.68301 894.7431 5 210 0.62092 130.3932 -738.8049

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