Harrison Contracting considered a maintenance contract for Canadian National Railway (CN). The CN contract is for 8 years, and brings in revenue of $28,000 per year, but the cost of equipment needed and annual expenses result in an NPV of -$12,368 at your firm's MARR of 12%. What additional annual revenue would CN's contract need to bring in to make it worthwhile for your firm to undertake the CN contract?

Harrison Contracting considered a maintenance contract for Canadian National Railway (CN). The CN contract is for 8 years, and brings in revenue of $28,000 per year, but the cost of equipment needed and annual expenses result in an NPV of -$12,368 at your firm's MARR of 12%. What additional annual revenue would CN's contract need to bring in to make it worthwhile for your firm to undertake the CN contract?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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