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5. What is the present worth of a project that requires $100,000 investment now and generates $30,000 every year for five years at a MARR of 12%?

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Answer #1

a. Present worth of the project = Annual Income * PVAF (12%, 5)

Present worth of the project = 30000 * 3.604776

Present Worth of the project = $108143.29 (answer)

NPV = $108143.29 -$100000 = $8143.29 (Additional Answer)

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