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 MARRIS 15 percent, whatis the annual worth of this project?

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 MARRIS 15 percent, whatis the annual worth of this project?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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 MARRIS 15 percent, what is the annual worth
of this project?

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