Given the following data, calculate the present worth of the investment. First cost = $60,000 Project life

Question:

Given the following data, calculate the present worth of the investment. First cost = $60,000 Project life = 10 years Salvage value = $15,000 MARR = 25% General price inflation=4% per year Annual cost 1 = $4500 in Year 1 and. inflating at 2.5% per year Annual cost 2 =$7000 in Year 1 and inflating at 10.0% per year Annual cost 3 = $10,000 in Year 1 and inflating at 6.5% per year Annual cost 4 = $8500 in Year 1 and inflating at -2.5% per year

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...