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Quilts R Us (QRU) is considering an investment in a new patterning attachment with the cash flow profile shown in the table below. QRUs MARR
Quilts R Us (QRU) is considering an investment in a new patterning attachment with the cash flow profile shown in the table below. QRUs MARR is 13.5%/year.
EOY | Cash Flow | EOY | Cash Flow |
0 | $1,300 | 8 | $600 |
1 | $0 | 9 | $700 |
2 | $500 | 10 | $800 |
3 | $500 | 11 | $900 |
4 | $500 | 12 | $1,000 |
5 | $500 | 13 | $2,000 |
6 | $0 | 14 | $3,000 |
7 | $500 | 15 | $1,400 |
What is the annual worth of this investment? __________($-17.57, $-1.70, $14.18, $30.06)
Based on annual worth analysis, should QRU invest? __________(yes, no)
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