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Can you please show work for a, b, c parts You need to know whether the building of a new warehouse is justified under the
Can you please show work for a, b, c parts
You need to know whether the building of a new warehouse is justified under the following conditions. - The proposal is for a warehouse costing $330,000. - The warehouse has an expected useful life of 35 years and a net salvage value (net proceeds from sale after tax adjustments) of $20,000. - Annual receipts of $76,000 are expected, annual maintenance and administrative costs will be $17,000/ year, and annual income taxes are $20,000. Given the foregoing data, which of the following statements are true? Click the icon to view the interest factors for discrete compounding when MARR =20% per year. Click the icon to view the interest factors for discrete compounding when MARR =25% per year. (a) The proposal is justified for a MARR of 20%. Choose the correct answer below. False True (b) The proposal has a net present worth of $174,054 when 25% is used as the interest rate. Choose the correct answer below. True False (c) The proposal is acceptable, as long as MARR 11.58%. Choose the correct answer below. False TrileStep by Step Solution
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