Determine if the company should invest in the project

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Reference no: EM132060383

Question: A project requires an initial investment of $50,000. The annual expenses are estimated to be $10,000 for the first year and decrease 5% per year over the 5 year life of the project. The annual revenues are estimated to be $15,000 for the first year and increase by $2,000 every year. The salvage value is expected to be $5,000 at the end of 5 years. Using Future Worth analysis, determine if the company should invest in this project if the MARR is 15%.

Reference no: EM132060383

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