What is the annual equivalent worth of a project where (a) the initial investment is$50,000; (b) will have revenues of $8,000 per year; (c) annual cost of operation andmaintenance of $1,200 and (d) a residual or salvage value of $2,000 after 15years? Assume rate of return is 8%.A. $-41,200B. $13,438C. $6,800D. $288E. -$712F. $3,600

Annual equivalent is one method of capital budgeting based on time value of money and is used for…

What is the annual equivalent worth of a project where (a) the initial investmen $50,000; (b) will have revenues of $8,000 per year; (c) annual cost of operation maintenance of $1,200 and (d) a residual or salvage value of $2,000 after 15 years? Assume rate of return is 8%. OA. $-41,200 O B. $13,438

What is the annual equivalent worth of a project where (a) the initial investmen $50,000; (b) will have revenues of $8,000 per year; (c) annual cost of operation maintenance of $1,200 and (d) a residual or salvage value of $2,000 after 15 years? Assume rate of return is 8%. OA. $-41,200 O B. $13,438

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...

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