Question
Consider a project which requires an initial investment of $50,000 and has a horizon of 5 years. At the end of the project, there is
Consider a project which requires an initial investment of $50,000 and has a horizon of 5 years. At the end of the project, there is no salvage value. During the lifetime of the project, annual revenue is projected to be $20,000 while annual expense is estimated to be $5,000. Assume MARR = 20%.
Calculate present worth from first principles, i.e., directly from the definition.
Calculate future worth from first principles
Calculate annual worth from the first principles.
Calculate the internal rate of return.
Calculate the payback period of this project
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