Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. consider a project that has an initial investment

Consider a project that has an initial investment of $100,000 and that returns $36,000 per...

50.1K

Verified Solution

Question

Finance

image
Consider a project that has an initial investment of $100,000 and that returns $36,000 per year for the next 5 years. If the MARR is 12%, is this a good investment? Use interest factor to evaluate the project based on PW. Since PW=$4,671.40 is positive, this is a good investment. Since PW=$29,744.80 is positive, this is a good investment. A revenue of $36,000 per year for five years is not acceptable. This is not a good investment. Since PW=$56,889 indicates a loss, this investment is not good

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

7. Mr. Thaggert is trying to decide whether to invest in stocks or in CD's(Certificate of...

Biology
1.2K views

A population of sheep is in Hardy Weinberg equilibrium The allele for white wool W...

Basic Math
1.2K views

Solve the triangle a b 12 c 8 A 60 B C Round to two...

Basic Math
1.2K views

Solve the following system of equations.3x+2y-5=0x=y+10Make sure there are NO SPACES in your answer. Include...

Calculus
1.2K views

Prev 1 0 7 1 9 4 3 5 Step 3 of 3 Determine if...

Algebra
1.2K views

Question 15 3 3 Given that a data set has a Median of 5 and...

Accounting
1.2K views

Majer Corporation makes a product with the following standard costs: ...

Accounting
1.2K views

During 20Y6, Candle CO. realizes that its beginning inventory for 20Y5 was...

Accounting
1.2K views

Simple Simon's Bakery purchases supplies on terms of 1.0/10 net 25. If Simple Simon's chooses...

Accounting
1.2K views

1. Fred specified in his will that his nephew John should serve as executor of...

Finance
1.2K views

1. (10%) Hercules Corp issued a $1,000 bond 10 years ago with an initial term...

Finance
1.2K views

Collection of Debtors a. Decreases current ratio b. Increases current ratio C. Has no effect...