Does the project annual worth indicate

Reference no: EM13303847

BP oil is in the process of replacing sections of its pipeline. The installed cost is expected to be about $170 million. The state imposes a tax of 22.5% on annual profits (net revenue over costs), which are estimated to average $85 million per year for a 20 year period.

a). At a corporate MARR of 10% per year, does the project Annual Worth indicate it will make at least the MARR?

Reference no: EM13303847

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