Two new software projects are proposed to a young, start-up company. - -The Alpha project will cost $250,000 to develop, will have an annual maintenance cost of $5,000, and is expected to have annual revenue of $40,000. - The Beta project will cost $200,000 to develop, will have an annual maintenance cost of $6,000, and is expected to have annual revenue of $30,000. Find the difference between the net present worth for the two projects. The ROR is given as 10%. Add your answer Integer, decimal, or E notation allowed
Two new software projects are proposed to a young, start-up company. - -The Alpha project will cost $250,000 to develop, will have an annual maintenance cost of $5,000, and is expected to have annual revenue of $40,000. - The Beta project will cost $200,000 to develop, will have an annual maintenance cost of $6,000, and is expected to have annual revenue of $30,000. Find the difference between the net present worth for the two projects. The ROR is given as 10%. Add your answer Integer, decimal, or E notation allowed
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:Two new software projects are proposed to a young, start-up company.
-
-The Alpha project will cost $250,000 to develop, will have an annual maintenance cost of $5,000, and is
expected to have annual revenue of $40,000.
- The Beta project will cost $200,000 to develop, will have an annual maintenance cost of $6,000, and is
expected to have annual revenue of $30,000.
Find the difference between the net present worth for the two projects. The ROR is given as 10%.
Add your answer
Integer, decimal, or E notation allowed
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