Question
The capital investment in the system is $65,000, and the projected annual savings are tabled below. The systems market value at the end of year
The capital investment in the system is $65,000, and the projected annual savings are tabled below. The systems market value at the end of year five is negligible, and the MARR is 18% per year.
a) What is the FW of this investment? b) What is the IRR of the system? c) What is the discounted payback period for this investment?
N End of Year Savings 1 $25,000 2 30,000 3 30,000 4 40,000 5 46,000Step by Step Solution
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Personal Finance
Authors: Thomas Garman, Raymond Forgue
12th edition
9781305176409, 1133595839, 1305176405, 978-1133595830
