14. Jupiter is considering investing time and administrative expense on an effort that promises one large payoff

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14. Jupiter is considering investing time and administrative expense on an effort that promises one large payoff in the future, followed by additional expenses over a 10-year horizon. The cash fl ow profi le is shown in the table below.

Jupiter’s MARR is 12 percent/year.

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a. What is the present worth of this investment?

b. What is the decision rule for judging the attractiveness of investments based on present worth?

c. Should Jupiter invest?

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Fundamentals Of Engineering Economic Analysis

ISBN: 9781118414705

1st Edition

Authors: John A. White, Kellie S. Grasman, Kenneth E. Case, Kim LaScola Needy, David B. Pratt

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