Consider a project that has an up-front cost of $100. In its first year it earns $30, and then in each subsequent year it earns an additional $10, so that in its second year it earns $40, the following year it earns $50, etc. The project lasts for 8 years so that in the final year its revenue is $100. The project is expected to repeat indefinitely. It has a MARR=13%. The NPW is within $5 of a)601 b)611 c)621 d)631 e)641 f) none
Consider a project that has an up-front cost of $100. In its first year it earns $30, and then in each subsequent year it earns an additional $10, so that in its second year it earns $40, the following year it earns $50, etc. The project lasts for 8 years so that in the final year its revenue is $100. The project is expected to repeat indefinitely. It has a MARR=13%. The NPW is within $5 of a)601 b)611 c)621 d)631 e)641 f) none
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider a project that has an up-front cost of $100. In its first year it earns $30, and then in each subsequent year it earns an additional $10, so that in its second year it earns $40, the following year it earns $50, etc. The project lasts for 8 years so that in the final year its revenue is $100. The project is expected to repeat indefinitely. It has a MARR=13%. The NPW is within $5 of
a)601
b)611
c)621
d)631
e)641
f) none
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