A small company purchased now for $23,000 will lose $1,200 each year for the first four years. An additional $8,000 invested in the company during the fourth year and will result in a profit of $10,000 each year from the fifth year through the fifteenth year. At the end of 15 years the company can be sold for $33,000. 1. Determine the FW if MARR = 10% 2. Calculate the ERR when ε = MARR = 10%

A small company purchased now for $23,000 will lose $1,200 each year for the first four years. An additional $8,000 invested in the company during the fourth year and will result in a profit of $10,000 each year from the fifth year through the fifteenth year. At the end of 15 years the company can be sold for $33,000. 1. Determine the FW if MARR = 10% 2. Calculate the ERR when ε = MARR = 10%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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