A project has an initial cost of $200,000 and uniform annual benefits of $35,000. At the...
A project has an initial cost of $200,000 and uniform annual benefits of $35,000. At the end of its 8-year useful life, its salvage value is $50,000. At a 10% interest rate, the net present worth of the project is approximately what amount?
$30,250
$130,000
$10,050
$34,825
Homework Answers
The net present worth of the project is:-
= -200000+35000*(P/A,10%,8)+50000*(P/F,10%,8)
= -200000+35000*5.334926+50000*0.466507
= -200000+186722.4+23325.37
= 10048
Option(C)
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