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 $
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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