Problem 2: (Exercise 6.5 is modified). Initial Cost: ($300,000) The Study Period: 15 years Salvage (Market) Value of the
Posted: Mon Apr 18, 2022 9:14 am
Problem 2: (Exercise 6.5 is modified). Initial Cost: ($300,000) The Study Period: 15 years Salvage (Market) Value of the Project: 20% of the initial cost Operating costs in the first year: ($7,500) Operating costs increase by 5% per year Benefits in the first year: $30,000 Benefit increase by 13% per year MARR: 15% per year • (25pts)Construct the Net Cash Flow Table. • (15pts)Determine the NPW. • (15pts) is the Project acceptable? WHY?