Decker Scientific is considering an investment of $980,000 in a new product line. The company will make the investment only if it will result in a 20% rate of return per year or higher. If the revenue is expected to be between $290,000 and $354,000 per year for 7 years, determine if the decision to invest is sensitive to the projected range of income using an annual worth analysis. The annual worth of the investment when the expected revenue is $290,000 is $ The annual worth of the investment when the expected revenue is $354,000 is $

Decker Scientific is considering an investment of $980,000 in a new product line. The company will make the investment only if it will result in a 20% rate of return per year or higher. If the revenue is expected to be between $290,000 and $354,000 per year for 7 years, determine if the decision to invest is sensitive to the projected range of income using an annual worth analysis. The annual worth of the investment when the expected revenue is $290,000 is $ The annual worth of the investment when the expected revenue is $354,000 is $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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