Question
The following options describe the possible usage of a vacant lot that includes a do nothing alternative. Project Parking Lot Gas Station Car Wash Initial
The following options describe the possible usage of a vacant lot that includes a do nothing alternative.
| Project | Parking Lot | Gas Station | Car Wash |
| Initial Investment | $50,000.00 | $100,000.00 | $44,000.00 |
| Operating Cost Per Year | $25,000.00 | $85,000.00 | $12,000.00 |
| Revenue Per Year | $35,000.00 | $70,000 in year 1, then increasing by $1,000 per year | $17,000.00 |
| Salvage Value | $10,000.00 | $10,000.00 | $12,000.00 |
| Life (years) | 5 | 10 | 15 |
If the Minimum Attractive Rate of Return (MARR) is 18%, what should be done with the vacant land using Annual worth analysis only?
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Basic Technical Mathematics
Authors: Allyn J. Washington, Richard Evans
12th Edition
0137529899, 9780137529896
