Equivalent uniform annual worth

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Reference no: EM131013862

Charleston Industries is trying to decide if expanding to a new product line would be worth the investment. The new line is estimated to have annual expenses of $28731 and annual profits of $97695. Charleston will be required to pay an annual product licensing fee beginning at the end of year 4 through the end of year 8. The fee will be $10197 and it will decrease by $501 each year. Charleston estimates the product line will be viable for 18 years. Charleston uses a MARR of 6% to evaluate investments. What is the equivalent uniform annual worth (EUAW) of this product line? Hint: Draw a CFD and count the years carefully.

Reference no: EM131013862

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