5. Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life. It has a salvage value of $3000 at the end of 10 years. If the MARR is 5 percent, what is the payback period of this project? Answer:
5. Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life. It has a salvage value of $3000 at the end of 10 years. If the MARR is 5 percent, what is the payback period of this project? Answer:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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![5. Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life. It has
a salvage value of $3000 at the end of 10 years. If the MARR is 5 percent, what is the payback period
of this project?
Answer:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdb6d770d-1122-4672-b099-f77c145be107%2F85b8e462-1b70-419b-b5d6-3606f9a035f7%2Fxdfar7_processed.png&w=3840&q=75)
Transcribed Image Text:5. Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life. It has
a salvage value of $3000 at the end of 10 years. If the MARR is 5 percent, what is the payback period
of this project?
Answer:
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