What is the future worth of each project

Reference no: EM131989384

Problem

Tempura Inc. is considering two projects, and must do one of them. Project A requires an investment of $56,000. Estimated annual receipts for 20 years are $21,000; estimated annual costs are $12,500. An alternative project, B, requires an investment of $59,000, has annual receipts for 20 years of $31,000, and has annual costs of $18,000. Assume both projects have a zero salvage value and that MARR is 10.0%/year. What is the future worth of each project?

Reference no: EM131989384

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