An engineering project has an investment amount of $129849 with an annual net profit of $53187 for 4 years. If the interest rate and average inflation rate are 15% and 6%, respectively, calculate the present worth of the entire period.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
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Question 11
An engineering project has an investment amount of $129849 with an annual net profit of $53187 for 4
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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Question 12
Chemitronix Ltd. is a microchips manufacturing company. It was found that the business is at the maturity stage
change. After rigorous research, management came up with the following decision variables
Expansion: 45% chance of gaining 1,500,000; 55% chance of losing X
New Product: 50% chance of gaining 900,000: 50% chance of losing 601446
Transcribed Image Text:average variance ron Question 11 An engineering project has an investment amount of $129849 with an annual net profit of $53187 for 4 years. If the interest rate and average inflation rate are 15% and 6%, respectively. calculate the present worth of the entire period. Add your answer Question 12 Chemitronix Ltd. is a microchips manufacturing company. It was found that the business is at the maturity stage change. After rigorous research, management came up with the following decision variables Expansion: 45% chance of gaining 1,500,000; 55% chance of losing X New Product: 50% chance of gaining 900,000: 50% chance of losing 601446
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