Question One: a) For the given projects with useful life equal six years. Find best alternative using Present worth Incremental with MARR = 18%. Project A B C D Investment cost $10,000 $12,000 | $6,000 | $8,000 Net per year $3,000 $3,500 $1,500 $2,500 Salvage Value $200 $300 $1,000 b) Suppose you are investing $20,000 each year at 12 % per year. How many years will it take you to have $2,000,000.

Principles of Accounting Volume 2
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Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 11EB: How much would you invest today in order to receive $30,000 in each of the following (for further...
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Question One:
a) For the given projects with useful life equal six years. Find best alternative using Present
worth Incremental with MARR = 18%.
Project
A
B
D
Investment cost $10,000 $12,000 $6,000 S8,000
$3,500 $1,500 $2,500
Net per year
$3,000
Salvage Value
$200
$300
$1,000
b) Suppose you are investing $20,000 each year at 12 % per year. How many years will it
take you to have $2,000,000.
Transcribed Image Text:Question One: a) For the given projects with useful life equal six years. Find best alternative using Present worth Incremental with MARR = 18%. Project A B D Investment cost $10,000 $12,000 $6,000 S8,000 $3,500 $1,500 $2,500 Net per year $3,000 Salvage Value $200 $300 $1,000 b) Suppose you are investing $20,000 each year at 12 % per year. How many years will it take you to have $2,000,000.
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