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5. The required investment cost of a new, large shopping center is $50 million. The...

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5. The required investment cost of a new, large shopping center is $50 million. The salvage value of the project is estimated to be $20 million (the value of the land). The project's life is 15 years, and the annual operating expenses are estimated to be $15 million (no operating expenses in year 0 ). The MARR for such projects is 20% per year. [ 20 points] (a) What must the minimum annual revenue (no revenue in year 0) be to make the shopping center a worthwhile venture? (b) Suppose the annual revenue is $26 million, What is the ERR of this project? Should this project be undertaken (use ERR to evaluate)

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