Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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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%
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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.
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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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