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

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
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