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Vedmedyk [2.9K]
4 years ago
9

1. Consider the following project and its cash flow: Investment cost $10,000 Expected life 5 years Market (salvage) value* -$1,0

00 Annual receipts $8,000 Annual expense -$4,000 * A negative market value means that there is a net cost to dispose of an asset. a. Determine its PW and FW with MARR 15% per year. Is the project acceptable
Business
1 answer:
avanturin [10]4 years ago
8 0

Answer:

PW = 2,911

FW = 5,856

Since both PW and FW are positive project may be accepted

Explanation:

the file attached below shows the full explanation

Download docx
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