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Question: One ship is worth $5 million, and it can run for 10 years, the residual value at year 10 is $0.3 million. The

Posted: Tue Apr 12, 2022 10:54 am
by answerhappygod
Question: One ship is worth $5 million, and it can run for 10 years, the residual value at year 10 is $0.3 million. The net revenues at the end of each year are $2.5 million, the annual interest rate is 10%.
Q: is it worthwhile to invest in this project?
(A/P, 10%, 10)=0.162745
(A/F, 10%, 10=0.062745
(P/F, 10%, 10)=0.38554
(P/A, 10%, 10=6.1446