Calculate the future worth of the project

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Case: Automobiles of the future will most likely be manufactured largely with carbon fibers made from recycled plastics, wood pulp, and cellulose. Last year (year 0), Carbon Manufacturing Company purchased a piece of equipment with $50,000 for research on this. The useful life of the machine is 12 years, at the end of which, the machine is estimated to have a $10,000 salvage value. The new machine generates annual revenues of $9,500. The annual operating and maintenance expenses are estimated to be $2,500. If the organization's MARR is 6%, calculate the following: a) Draw the cash flow diagram for the project.

Question 1. Calculate the present worth of the project.

Question 2. Calculate the annual worth of the project.

Question 3. Calculate the future worth of the project.

Reference no: EM133633570

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