Consider the following project (MARR = 12%): Year 0 1 2 A -90,000 32,000 32,000 3 16,000 4 5 6 16,000 16,000 16,000 7 32,000 a. Plot the project balances values over the course of the cash flow. Determine the discounted payback period and the future worth of the investment from the project balance values. b. How much is the project's capitalized worth (CEA) if the cash flow pattern for the project repeats itself every seven years going forward?

Consider the following project (MARR = 12%): Year 0 1 2 A -90,000 32,000 32,000 3 16,000 4 5 6 16,000 16,000 16,000 7 32,000 a. Plot the project balances values over the course of the cash flow. Determine the discounted payback period and the future worth of the investment from the project balance values. b. How much is the project's capitalized worth (CEA) if the cash flow pattern for the project repeats itself every seven years going forward?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Answer part A Answer part B
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