Question
A SMALL INDUSTRIAL PROJECT IS committed to an immediate payment of $90000 worth of machinery.equipment.and tools.Operating cost annually in the form of wages ,fuel .power,
A SMALL INDUSTRIAL PROJECT IS committed to an immediate payment of $90000 worth of machinery.equipment.and tools.Operating cost annually in the form of
wages ,fuel .power, and maintenance are estimated at $6000 in year 1,$8000 in year 2,and $13000 in year 3,and $15000 in year 4,Annual operating cost will maintain that level .i.e.,
S15000 untill the end of the project's life.
revenues are estimated at $15000 in year 1,$18000 in year
2,$25000 in year 3,and $35000 in year 4 and every year until the
end of the project's life.
The life of the project is 10 years.
the cost of capital 8%,the salvage value of machinery, equipment ,and tools is
zero at the end of the project's life.
NPV,B/C ,and IRR
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