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2. An investment of 105,815.40 can be made in a project that will produce a uniform annual revenue of 53,000 for 5 years and then have a salvage value of 30,000. Annual disbursements will be 30,000 each year for operation and maintenance costs. The company's minimum attractive rate of return is 10%. Show whether this is a desirable investment by using the NPW, NFW, AW, IRR, ERR, PI, Payback and B/C. 30,000 53,000 53,000 53,000 53,000 | 53,000 2 3 30,000 30,000' 30,000 30,000 30,000 5 105,815.40 MARR = 10%

2. An investment of 105,815.40 can be made in a project that will produce a uniform annual revenue of 53,000 for 5 years and then have a salvage value of 30,000. Annual disbursements will be 30,000 each year for operation and maintenance costs. The company's minimum attractive rate of return is 10%. Show whether this is a desirable investment by using the NPW, NFW, AW, IRR, ERR, PI, Payback and B/C. 30,000 53,000 53,000 53,000 53,000 | 53,000 2 3 30,000 30,000' 30,000 30,000 30,000 5 105,815.40 MARR = 10%

Elements Of Electromagnetics
Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
ChapterMA: Math Assessment
Section: Chapter Questions
Problem 1.1MA
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ANSWERS: 

NPW= 0.34

NFW= 0.54

AW= 0.09

PI= 1

IRR i%= 10% = M.A.R.R.

ERR i%= 10% = M.A.R.R.

PAYBACK Simple= 4.6 years and Discounted= 5 years

B/C Conventional= 1 and Modified= 1

2. An investment of 105,815.40 can be made in a project that will produce a uniform annual revenue of 53,000 for 5 years and then have a salvage value of 30,000. Annual disbursements will be 30,000 each year for operation and maintenance costs. The company's minimum attractive rate of return is 10%. Show whether this is a desirable investment by using the NPW, NFW, AW, IRR, ERR, PI, Payback and B/C. 30,000 53,000 53,000 53,000 53,000 53,000 2 3 5 30,000 30,000' 30,000 30,000 30,000 105,815.40 MARR = 10%
Transcribed Image Text:2. An investment of 105,815.40 can be made in a project that will produce a uniform annual revenue of 53,000 for 5 years and then have a salvage value of 30,000. Annual disbursements will be 30,000 each year for operation and maintenance costs. The company's minimum attractive rate of return is 10%. Show whether this is a desirable investment by using the NPW, NFW, AW, IRR, ERR, PI, Payback and B/C. 30,000 53,000 53,000 53,000 53,000 53,000 2 3 5 30,000 30,000' 30,000 30,000 30,000 105,815.40 MARR = 10%
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