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Compute the FW (future worth) of The Lancelot. Remember to include your calculations in your supporting work.

Compute the FW (future worth) of The Lancelot. Remember to include your calculations in your supporting work.

Essentials Of Investments
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
Problem 1PS
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Four alternative designs are being considered for a pet-exercising treadmillI. The company's MARR is 18%. The cash flows associated with each are given in the following table. The Judas The Lancelot The Bella The Lilo $120,000 $50,000 $130,000 $141,000 $50,000 $13,000 $18,000 Capital Investment $160,000 Annual Revenues Annual Expenses $50,000 $50,000 $20,000 $15,000 $14,000 $15,000 $15,000 Refurbish at EOY 5 $23,000 $4,000 $23,000 $4,000 Market Value after 10 years $5,000 IRR ??? 21.8% 21.6% 17.7%
Transcribed Image Text:Four alternative designs are being considered for a pet-exercising treadmillI. The company's MARR is 18%. The cash flows associated with each are given in the following table. The Judas The Lancelot The Bella The Lilo $120,000 $50,000 $130,000 $141,000 $50,000 $13,000 $18,000 Capital Investment $160,000 Annual Revenues Annual Expenses $50,000 $50,000 $20,000 $15,000 $14,000 $15,000 $15,000 Refurbish at EOY 5 $23,000 $4,000 $23,000 $4,000 Market Value after 10 years $5,000 IRR ??? 21.8% 21.6% 17.7%
Compute the FW (future worth) of The Lancelot. Remember to include your calculations in your supporting work. Round your answer to the nearest dollar.
Transcribed Image Text:Compute the FW (future worth) of The Lancelot. Remember to include your calculations in your supporting work. Round your answer to the nearest dollar.
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