Repeat Exercise 8.6 if the MARR for the company is (5.5 %) in the first 4 years
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Repeat Exercise 8.6 if the MARR for the company is \(5.5 \%\) in the first 4 years and increases to \(6 \%\) starting in year 5.
Exercise 8.6
A newly implemented technology in a manufacturing plant pays zero revenue in the first 2 years but \(\$ 1,000\) revenue in the third and fourth years; this amount increases by \(\$ 500\) annually for the following 5 years. If the company uses an MARR of \(5.5 \%\) per year, what is the present value of these cash flows? What is the annual equivalent of the benefits over a 7 -year period?
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Related Book For
Project Management Systems Principles And Applications
ISBN: 272859
2nd Edition
Authors: Adedeji B. Badiru
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