Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Please solve attached question normally, not using excel. thanks!
![The investment cost of a new product line is $384,045. The annual operating cost is estimated to be $187,564. The project life is 7 years and it will cost $14,993 to dispose of it at the end of its life. The company's Minimum Acceptable Rate of Return (MARR) is 15%. What is the minimum annual revenue to make this project profitable?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbb522ccf-469e-4dd7-ba04-e85306add3cc%2Ff4bda224-f21e-4540-890a-aa0eb51562e1%2F0jgh12m_processed.png&w=3840&q=75)
Transcribed Image Text:The investment cost of a new product line is $384,045. The annual operating cost is estimated to be $187,564. The project life is 7 years and it will cost $14,993 to dispose of it at the end of its life. The company's Minimum Acceptable Rate of Return (MARR) is 15%. What is the minimum annual revenue to make this project profitable?
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