What is present equivalent value of projects cash outflow

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Problem

An engineering project analyst is contemplating a 3-year project which will require an initial investment for equipment of $85,000. It is anticipated that, if there is no inflation, annual revenues from the project will be $60,000 and annual cash expenses will be $25,000. It is estimated that the left-over equipment will have a market value of $45,000 at the end of three years. MARR is 10%. What is the Present equivalent value of the project's cash outflow? Get the instant assignment help. What is the project cash inflows' equivalent future worth? Determine the ERR of the project.

Reference no: EM133910274

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