What is the annual equivalent worth of the project

Assignment Help Econometrics

Reference no: EM13204587

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: EM13204587

Questions Cloud

Calculate the area of the shaded region : the sides AB and BC of the right angle in triangle ABC,inscribed in the circle with centre O,measure 14cm and 48cm respectively. calculate the area of the shaded region?

How would you determine if soap and shampoo are competitors : Consider the demand for gasoline. When the price of gasoline increases by a relatively large amount, the quantity of gasoline purchased falls by a relatively small amount. Consider the market for soap. How would you determine if soap and shampoo ar..

Write algeraic expression-pre-calculus : Write algeraic expression-pre-calculus.

Added value of offering fleetboston business : What is the added value of offering FleetBoston business chequing accounts in Staples stores? Would you be optimistic about this experiment?

What is the annual equivalent worth of the project : 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%

What are the dimensions of the original garden : If the width is doubled, fifty extra feet of fencing will be need to keep out the creatures. What are the dimensions of the original garden?

The spanish franciscan missionaries : The Spanish Franciscan missionaries...

Find a formula for its value as a function of time : If a 1500 dollar refrigerator depreciates completely in 11 years, find a formula for its value as a function of time,x ,in years.

Developmental life stage or phase : Why does the chosen theory appeals to you, and relate it to a developmental life stage or phase? Examples of life stages or phases may include marriage, parenthood, career, a return to school, empty nest, grand parenting, etc.

User Account

All Pages