The proposal is for a warehouse costing $100,000. The warehouse has an expected useful life of 35 years and a net salvage value of $25,000. Annual receipts of $17,000 and maintenance and administrative cost of $6,000/yr.. What is the annual worth at 6% compounded annually? O a. $5673 O b. $2367 O c. $11,250 O d. $4327

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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You need to know if the building of a new warehouse is
justified under the following conditions.
The proposal is for a warehouse costing $100,000. The
warehouse has an expected useful life of 35 years and a
net salvage value of $25,000. Annual receipts of $17,000
and maintenance and administrative cost of $6,000/yr..
What is the annual worth at 6% compounded annually?
O a. $5673
O b. $2367
O c.
$11,250
O d.
$4327
Transcribed Image Text:You need to know if the building of a new warehouse is justified under the following conditions. The proposal is for a warehouse costing $100,000. The warehouse has an expected useful life of 35 years and a net salvage value of $25,000. Annual receipts of $17,000 and maintenance and administrative cost of $6,000/yr.. What is the annual worth at 6% compounded annually? O a. $5673 O b. $2367 O c. $11,250 O d. $4327
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