Homework 5.16 Modified Consider the following investment project: using MARR of

Question

Homework 5.16 Modified Consider the following investment project: using MARR of 12% 0 -$42,000 32,400 33,400 32,500 32,500 33,000 a. Calculate the Net Present Worth (Old - Treat An as F's) [6pts] Investment Pool (Option 1) [1] Investment Pool (Option 2) & Cash Accumulated & Eq Present Worth [8] Project Balance (Borrowed) & Net Future Worth & Eq Present Worth [8 EXAPLAIN what you found? Acceptable? [1] Relationships between PW, FW,Cash Accumulated, Project Balance [4] C. ALwAYS LEARNING Contemporary Engineering Eco on s o edition Copyright © 2016 by Pearson Education, ed PEARSON

Explanation / Answer

(a) The Net Present worth is as shown in the table below:

(b) The Nep Future worth is as shown in the table below:

(c) Yes, The preoject is acceptable since it has positive net present worth

Year Cash flows Present Worth 0 $ -42,000.00 $ -42,000.00 1 $   32,400.00 $   28,928.57 2 $   33,400.00 $   26,626.28 3 $   32,500.00 $   23,132.86 4 $   32,500.00 $   20,654.34 5 $   33,000.00 $   18,725.09 Net Present Worth $   76,067.13

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.