(LG 4.5) Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life. It has a salvage value of $3000 at the end of 10 years. If the MARR is 15 percent, what is the future worth of this project after 10 years? What is the discounted payback period for this project?
(LG 4.5) Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life. It has a salvage value of $3000 at the end of 10 years. If the MARR is 15 percent, what is the future worth of this project after 10 years? What is the discounted payback period for this project?
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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the answer to this question is Q4.25= $8756 but we just need to find how we get that answer for these questions, please help NO EXCEL
Transcribed Image Text:4.25 (LG 4.5) Margaret has a project with a $28 000 first cost that returns $5000 per
year over its 10-year life. It has a salvage value of $3000 at the end of 10 years. If
the MARR is 15 percent, what is the future worth of this project after 10 years?
What is the discounted payback period for this project?
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