Question
GENERAL INSTRUCTIONS: ENTER YOUR ANSWER WITHOUT THE $ SIGN AND COMMA, BUT FORMATTED IN DOLLARS ROUNDED TO THE NEAREST DOLLAR, for instance if you compute
GENERAL INSTRUCTIONS: ENTER YOUR ANSWER WITHOUT THE $ SIGN AND COMMA, BUT FORMATTED IN DOLLARS ROUNDED TO THE NEAREST DOLLAR, for instance if you compute $69,289.6478 then ENTER 69290 AS YOUR ANSWER. DO NOT ROUND IN YOUR CALCULATION STEPS (use calculator memory functions) TO AVOID ROUNDING ERRORS. There is a little bit of tolerance built into accepting/rejecting your answer, but if you round in your intermediate calculations you may be too far off. Prime Petroleum Inc. is considering an acquisition of a new production facility in order to expand production of its main product, a gasoline additive Gas Gain. The cost of construction (first cost) is $6,000,000. The annual operating cost is projected to be $800,000. The facility will be liquidated in 27 years, resulting in a salvage value inflow of $2,000,000. Assuming MARR of 6%, compute the annual worth of the project's cash flows, and type in your answer expressed as a cost (do not include negative sign with your answer).
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