The required investment cost of a new, large shopping center is $49 million. The salvage value of the project is estimated to be $20 million (the value of the land). The project's life is 17 years and the annual operating expenses are estimated to be $14 million. The MARR for such projects is 22% per year. What must the minimum annual revenue be to make the shopping center a worthwhile venture? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 22% per year. To make the shopping center a worthwhile venture, the minimum annual revenue must be $million per year. (Round to three decimal places.)

The required investment cost of a new, large shopping center is $49 million. The salvage value of the project is estimated to be $20 million (the value of the land). The project's life is 17 years and the annual operating expenses are estimated to be $14 million. The MARR for such projects is 22% per year. What must the minimum annual revenue be to make the shopping center a worthwhile venture? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 22% per year. To make the shopping center a worthwhile venture, the minimum annual revenue must be $million per year. (Round to three decimal places.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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