What was the projects present worth and annual worth

Assignment Help Business Economics

Reference no: EM13896625

Katie's project has a five-year term, a first cost, no salvage value, and annual savings of $20 000 per year. After doing present worth and annual worth calculations with a 15% interest rate, Katie notices that the calculated annual worth for the project is exactly three times the present worth. What was the project's present worth and annual worth? Should katie undertake the project?

Reference no: EM13896625

Questions Cloud

Each loaf of bread so as to make supply equal demand : In a certain kingdom, the demand function for rye bread was q = 381 − 3p and the supply function was q = 5 + 7p, where p is the price in zlotys and q is loaves of bread. The king made it illegal to sell rye bread for a price above 32 zlotys per loaf...

Private practice needs van to carry crew and equipment : A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3581 per year, paid at the beginning of each year, in which case maintenance is provide. What is the most she should pay f..

Calculate the elasticity of demand as a function : Calculate the elasticity of demand as a function of Q. Does firm's profit maximization problem satisfy the global SOC? Using your answer 1,2 question, what is firm's profit maximizing markup?

Income elasticity of demand is expected : Income elasticity of demand is expected to be _____.

What was the projects present worth and annual worth : Katie's project has a five-year term, a first cost, no salvage value, and annual savings of $20 000 per year. After doing present worth and annual worth calculations with a 15% interest rate, Katie notices that the calculated annual worth for the pro..

Calculate the firms inverse demand function : Calculate the firm's inverse demand function. Calculate the firm's marginal and average cost function. Find all values of Q that satisfy the first order condition for the firm's problem. Calculate the firm's profit maximizazing price and quantity.

Peanut butter and jelly : Peanut butter and jelly are:

Suppose the mpc in an economy : Suppose the mpc in an economy is .85 the apc is .09 and disposable income if 5 billion. What is the new consumption level when disposable income increases to 12 billion?

Demand for money depends positively on real income : If the demand for money depends positively on real income and depends inversely on the nominal interest rate, what will happen to the price level today, if the central bank announces (and people believe) that it will decrease the money growth rate in..

User Account

All Pages