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the project! Problem 4.2 You are faced with making a deci- sion on a large capital investment proposal. The capital investment amount is $640,000. Estimated

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the project! Problem 4.2 You are faced with making a deci- sion on a large capital investment proposal. The capital investment amount is $640,000. Estimated an- nual revenue at the end of each year in the eight-year study period is $180,000. Estimated annual year- end expenses are $42,000, starting in year 1. These expenses begin de- creasing by $4,000 per year at EOY and continue decreasing through 8. Assuming a $20,000 mar- t value at EOY eight and a MARR 0 per year, what is the present orth of this proposal? What is your sion about the acceptability of EOY 8. Assumi = 12% per year, w conclusion about this proposal

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