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Patti's project has an IRR of 15 percent, first cost P, and annual savings A. She observed that the salvage value, S, at the end
Patti's project has an IRR of 15 percent, first cost P, and annual savings A. She observed that the salvage value, S, at the end of the five-year life of the project was exactly a third of the purchase price and that the present worth of the project was exactly double the annual savings. What was Patti's MARR?Compound interest factors for discrete compounding, discrete cash flows (i=15%) Single Payment Uniform Series Series Arithmetic Compound Present Sinking Uniform Capital Present Gradient Amount Worth Fund Series Recovery Worth Series Factor Factor Factor Factor Factor Factor Factor Z (F/P,i,N) (P/F,i,N) (A/F,i,N) (FIA,i,N) (A/P,i, N) (PIA,i,N) (A/G,i,N) 1.1500 0.86957 1.0000 1.00000 1.1500 0.86957 0.00000 1.3225 0.75614 0.46512 2.1500 0.61512 1.6257 0.46512 1.5209 0.65752 0.28798 3.4725 0.43798 2.2832 0.90713 1.7490 0.57175 0.20027 4.9934 0.35027 2.8550 1.3263 2.0114 0.49718 0.14832 6.7424 0.29832 3.3522 1.7228 2.3131 0.43233 0.11424 8.7537 0.26424 3.7845 2.0972 2.6600 0.37594 0.09036 11.067 0.24036 4.1604 2.4498 3.0590 0.32690 0.07285 13.727 0.22285 4.4873 2.7813 3.5179 0.28426 0.05957 16.786 0.20957 4.7716 3.0922 4.0456 0.24718 0.04925 20.304 0. 19925 5.0188 3.3832 4.6524 0.21494 0.04107 24.349 0.19107 5.2337 3.6549 5.3503 0.18691 0.03448 29.002 0.18448 5.4206 3.9082 6.1528 0.16253 0.02911 34.352 0.17911 5.5831 4.1438 7.0757 0.14133 0.02469 40.505 0.17469 5.7245 4.3624 8.1371 0.12289 0.02102 47.580 0.17102 5.8474 4.5650 9.3576 0.10686 0.01795 55.717 0.16795 5.9542 4.7522 10.761 0.09293 0.01537 65.075 0.16537 6.0472 4.9251 12.375 0.08081 0.01319 75.836 0.16319 6.1280 5.0843 14.232 0.07027 0.01134 88.212 0.16134 6.1982 5.2307 16.367 0.06110 0.00976 102.44 0.15976 6.2593 5.3651 18.822 0.05313 0.00842 118.81 0.15842 6.3125 5.4883 21.645 0.04620 0.00727 137.63 0.15727 6.3587 5.6010 24.891 0.04017 0.00628 159.28 0.15628 6.3988 5.7040 28.625 0.03493 0.00543 184.17 0.15543 6.4338 5.7979 32.919 0.03038 0.00470 212.79 0.15470 6.4641 5.8834 37.857 0.02642 0.00407 245.71 0.15407 6.4906 5.9612 43.535 0.02297 0.00353 283.57 0.15353 6.5135 6.0319 50.066 0.01997 0.00306 327.10 0.15306 6.5335 6.0960 57.575 0.01737 0.00265 377.17 0.15265 6.5509 6.1541 66.212 0.01510 0.00230 434.75 0.15230 6.5660 6.2066 76.144 0.01313 0.00200 500.96 0.15200 6.5791 6.2541 87.565 0.01142 0.00173 577.10 0.15173 6.5905 6.2970 100.70 0.00993 0.00150 664.67 0.15150 6.6005 6.3357 115.80 0.00864 0.00131 765.37 0.15131 6.6091 6.3705 133.18 0.00751 0.00113 881.17 0.15113 6.6166 6.4019 267.86 0.00373 0.00056 1779.1 0.15056 6.6418 6.5168 538.77 0.00186 0.00028 3585.1 0.15028 6.6543 6.5830 1083.7 0.00092 0.00014 7217.7 0.15014 6.6605 6.6205 2179.6 0.00046 0.00007 14524.0 0.15007 6.6636 6.6414
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