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A project firm is considering for implementation has these estimated cost and reveneus: an investment cost...

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Economics

A project firm is considering for implementation has theseestimated cost and reveneus: an investment cost of $50,008,mantainance cost starts at $5,000 at the end of year(FOY) one andincrease by $1,000 for the next four years, and then remainsconstant for the following five years: savings of $24,105 peryear(EOY 1-10) and finally a resale value of $27,215 at EOY 10. Ifthe project has a 10 year life and the firm's MARR is 10% per year,What is the present worth of the project?

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4.3 Ratings (948 Votes)
Solution Net benefit table Years SavingX Maintenance costY Net Benefit XY 1 24105 5000 19105 2 24105 6000 18105 3    See Answer
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