DQuestion 1Consider a project that has an initial investment of $100,000 and that returns $36,000 per year forthe next 5 years. If the MARR is 12%, is this a good investment? Use interest factor to evaluate theproject based on PW.Since PW - $4,671.40 is positive, this is a good investment.Since PW-$29,744.80 is positive, this is a good investment.A revenue of $36,000 per year for five years is not acceptable. This is not a good investment.O Since PW-$56,889 indicates a loss, this investment is not good.

Present value is the value of investment in today's dollar. Future value is the value of investment…

Answered: Consider a project that has an initial…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Engineering Economics1
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