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A company is considering a project which requires $4.2 million in capital investment. The project can bring in an annual revenue of $150k/year next 18
A company is considering a project which requires $4.2 million in capital investment. The project can bring in an annual revenue of $150k/year next 18 years. The annual operation cost (eg. labor and supplies) is $24k/year. Starting from year 13, the equipment will need major maintenance and this cost starts at $14k/year and increase by $14k each year until the end of the project life time (18 years). The equipment has a salvage value of $420k at the end of the project. Calculate the project's net future value at year 18 to find out whether it's worth investing. The interest rate is 7% Please only fill in the number of your calculated result in the blank, e.g., if the result is $100k, fill in "100"; also round to the nearest integer." LATEX
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