Determine the FW of the following engineering project when the MARR is 13% per year. Is the project acceptable? Proposal A Investment cost $10,000 Expected life Market (salvage) value Annual receipts Annual expenses 6 years - $1,200 S7,000 $4,000 *A negative market value means that there is a net cost to dispose of an asset. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 13% per year. The FW of the following engineering project is S (Round to the nearest dollar.) According to the FW Decision Rule the project Vacceptable.

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
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Determine the FW of the following engineering project when the MARR is 13% per year. Is the project acceptable?
Proposal A
Investment cost
$10,000
Expected life
Market (salvage) value
6 years
- 51,200
Annual receipts
S7,000
Annual expenses
$4.000
A negative market value means that there is a net cost to dispose of an asset.
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 13% per year.
The FW of the following engineering project is S
(Round to the nearest dollar.)
According to the FW Decision Rule the project
v acceptable.
Transcribed Image Text:Determine the FW of the following engineering project when the MARR is 13% per year. Is the project acceptable? Proposal A Investment cost $10,000 Expected life Market (salvage) value 6 years - 51,200 Annual receipts S7,000 Annual expenses $4.000 A negative market value means that there is a net cost to dispose of an asset. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 13% per year. The FW of the following engineering project is S (Round to the nearest dollar.) According to the FW Decision Rule the project v acceptable.
i More Info
Discrete Compounding; i=13%
Unifonm Series
Siriking,
Fund
Factor
To Find A
Given F
Single Payment
Compound
Amount
Capital
Recovery
Factor
To Find A
Given P
A/P
Compound
Amount
Factor
Present
Worth Factor
To Find P
Given F
PIF
Preserit
Worth Factor
To Find P
Given 4
PIA
Factor
To Find F
Given 4
FIA
To Find F
Given P
FIP
1.1300
0.8850
1.0000
0.8850
1.6681
2.3612
1.0000
1.1300
1.2769
0.7831
2.1300
0.4695
0.5995
1.4429
0.6931
3.4069
0.2935
0.4235
1.6305
0.6133
4.8498
6,4803
8.3227
2.9745
0.2062
0.3362
1.8424
0.5428
3.5172
3.9975
4.4226
0.1543
0.2843
2.0820
0.4803
0.1202
0.2502
2.3526
0.4251
10.4047
0.0961
0.2261
8
2.6584
0.3762
12.7573
47988
0.0784
0.2084
3.0040
0.3329
15.4157
5.1317
5.4262
0.0649
0.1949
10
3.3946
0.2946
18.4197
0.0543
0.1843
Print
Done
Z12 3456 709
Transcribed Image Text:i More Info Discrete Compounding; i=13% Unifonm Series Siriking, Fund Factor To Find A Given F Single Payment Compound Amount Capital Recovery Factor To Find A Given P A/P Compound Amount Factor Present Worth Factor To Find P Given F PIF Preserit Worth Factor To Find P Given 4 PIA Factor To Find F Given 4 FIA To Find F Given P FIP 1.1300 0.8850 1.0000 0.8850 1.6681 2.3612 1.0000 1.1300 1.2769 0.7831 2.1300 0.4695 0.5995 1.4429 0.6931 3.4069 0.2935 0.4235 1.6305 0.6133 4.8498 6,4803 8.3227 2.9745 0.2062 0.3362 1.8424 0.5428 3.5172 3.9975 4.4226 0.1543 0.2843 2.0820 0.4803 0.1202 0.2502 2.3526 0.4251 10.4047 0.0961 0.2261 8 2.6584 0.3762 12.7573 47988 0.0784 0.2084 3.0040 0.3329 15.4157 5.1317 5.4262 0.0649 0.1949 10 3.3946 0.2946 18.4197 0.0543 0.1843 Print Done Z12 3456 709
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