Homework Answers
total initial cost = 300000 + 550000 + 300000 +100000 = 1250000
total value recovered after 12 year = 350000 + 350000 + 40000 + 100000 = 840000
Annual revenue = 900000
annual cost = 475000
MARR = 13%
t = 12 year
AW = -1250000*(A/P,13%,12) + 900000 - 475000 + 840000*(A/F,13%,12)
= -1250000*0.168986 + 425000 + 840000*0.038986
= 246515.74
= 246516 (round to nearest dollar)
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