Compute the future worth of this endeavor

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Reference no: EM131535915

Acme Appliances plans to update their manufacturing capacity with new machinery according to the forecasted data shown in the following table. Compute the future worth of this endeavor.

Initial Cost: $118,000

O&M Cost (1st 4 years): $5,000

O&M Cost Increase (Years 5+): $500 per Year

Projected Annual Revenues: $35,000

Salvage Value: 5% of Initial Cost

MARR: 15%

Useful Life: 12 Years

Reference no: EM131535915

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