What is the annual equivalent worth of the project

Reference no: EM13200992

You are considering making an $80,000 investment in a process improvement project. Revenues are expected to grow from $50,000 in year 1 by $30,000 each year for the next four years, ($50,000 first year, $80,000 second year, $110,000 third year, and so forth) while costs are expected to increase from $20,000 in year 1 by $10,000 each year. If there is no salvage value at the end of 5 years, what is the annual equivalent worth of the project assuming a MARR of 12%

Reference no: EM13200992

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