Calculate annual worth.
Explanation of Solution
Investment (INV) is $850,000. Lowest range of revenue (LR) is $290,000 per year. Highest range of revenue (HR) is $$325,000 per year. Time period (n) is 5. Rate of return (i) is 2%.
Annual worth (AW) for the lowest range of earning can be calculated as follows.
Annual worth of the project with the lowest expected earnings per year is $5,777.
Annual worth (AW) for the highest range of earning can be calculated as follows.
Annual worth of the project with highest expected earnings per year is $40,777.
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Chapter 18 Solutions
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