You are considering making an $80,000 investment in a process improvement project. Revenues are expected to grow from $50,000 in 1 year by $30,000 each year for the next four years ($50,000 first Year, $80,000 second year, $110,000 third year and so forth) while cost are expected to increase from $20,000 in year 1 by $10,000 each year. If there is no salvage value at the end of five years. What is the future worth of the project assuming an MARR of 18%?
You are considering making an $80,000 investment in a process improvement project. Revenues are expected to grow from $50,000 in 1 year by $30,000 each year for the next four years ($50,000 first Year, $80,000 second year, $110,000 third year and so forth) while cost are expected to increase from $20,000 in year 1 by $10,000 each year. If there is no salvage value at the end of five years. What is the future worth of the project assuming an MARR of 18%?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![You are considering making an $80,000 investment in a process improvement
project. Revenues are expected to grow from $50,000 in 1 year by $30,000
each year for the next four years ($50,000 first Year, $80,000 second year,
$110,000 third year and so forth) while cost are expected to increase from
$20,000 in year 1 by $10,000 each year. If there is no salvage value at the end
of five years. What is the future worth of the project assuming an MARR of
18%?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5ed001e6-7d6a-4e19-ac2f-f9ab7ddc5275%2F3a32fbbc-5527-4626-b27d-6718980b5ec0%2Fdx2gimj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:You are considering making an $80,000 investment in a process improvement
project. Revenues are expected to grow from $50,000 in 1 year by $30,000
each year for the next four years ($50,000 first Year, $80,000 second year,
$110,000 third year and so forth) while cost are expected to increase from
$20,000 in year 1 by $10,000 each year. If there is no salvage value at the end
of five years. What is the future worth of the project assuming an MARR of
18%?
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