An engineering project has an investment amount of $126983 with an annual net profit of $53824 for 5 years. If the interest rate and average inflation rate are 15% and 6%, respectively, calculate the present worth of the entire period.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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An engineering project has an investment amount of $126983 with an annual net profit of $53824 for 5
years. If the interest rate and average inflation rate are 15% and 6%, respectively, calculate the present worth
of the entire period.
Transcribed Image Text:Question 4 An engineering project has an investment amount of $126983 with an annual net profit of $53824 for 5 years. If the interest rate and average inflation rate are 15% and 6%, respectively, calculate the present worth of the entire period.
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