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Company ABC is considering investing in a project whose initial cost is $186000. It saves $44000 in the first year, increasing by $5800 each year thereafter. The salvage value of the project is $12500 at the end of year 7. The cost of operating and maintenance in the first year is $3400, increasing by 4% each year thereafter. The company wants to see if the project is worth to be invested in. To help ABC to decide, you should find the present worth (PW) of the project. The company's MARR is 12%. Answer:

Company ABC is considering investing in a project whose initial cost is $186000. It saves $44000 in the first year, increasing by $5800 each year thereafter. The salvage value of the project is $12500 at the end of year 7. The cost of operating and maintenance in the first year is $3400, increasing by 4% each year thereafter. The company wants to see if the project is worth to be invested in. To help ABC to decide, you should find the present worth (PW) of the project. The company's MARR is 12%. Answer:

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Company ABC is considering investing in a project whose initial cost is $186000. It saves $44000 in the first year, increasing by $5800 each year thereafter. The salvage value of the project is $12500 at the end of year 7. The cost of operating and maintenance in the first year is $3400, increasing by 4% each year thereafter. The company wants to see if the project is worth to be invested in. To help ABC to decide, you should find the present worth (PW) of the project. The company's MARR is 12%. Answer:
Transcribed Image Text:Company ABC is considering investing in a project whose initial cost is $186000. It saves $44000 in the first year, increasing by $5800 each year thereafter. The salvage value of the project is $12500 at the end of year 7. The cost of operating and maintenance in the first year is $3400, increasing by 4% each year thereafter. The company wants to see if the project is worth to be invested in. To help ABC to decide, you should find the present worth (PW) of the project. The company's MARR is 12%. Answer:
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