You are considering investing in a long-term project that will take time before you see any profits. If the cash flows are as follows and your company has a MARR of 18%, what is the present worth of the project? (Note that the parentheses indicate a negative cash flow.) Year 0: ($12,000) Year 1: ($9,000) Year 2: ($6,000) Year 3: ($3,000) Year 4: $0 Year 5: $3,000 Year 6: $6,000 Year 7: $9,000 Year 8: $12,000 Year 9: $15,000 Year 10: $18,000 Year 11: $21,000 Year 12: $24,000 Present Worth:
You are considering investing in a long-term project that will take time before you see any profits. If the cash flows are as follows and your company has a MARR of 18%, what is the present worth of the project? (Note that the parentheses indicate a negative cash flow.) Year 0: ($12,000) Year 1: ($9,000) Year 2: ($6,000) Year 3: ($3,000) Year 4: $0 Year 5: $3,000 Year 6: $6,000 Year 7: $9,000 Year 8: $12,000 Year 9: $15,000 Year 10: $18,000 Year 11: $21,000 Year 12: $24,000 Present Worth:
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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