What is the annual worth of the company

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Reference no: EM132055500

Problem: A pharmaceutic engineer started a small-scale drug processing company for the production of Aloe Vera extract with an initial investment of $750 000. The company only broke even (no profit) the first 3 years of its start-up, but years 4 through 8, it made a profit of $ 1,075,000 per year and after which the profit was observed to increase by a constant amount of $135000 for the next four years. It cost the company an aggregate sum of $620,000 per year to maintain and run the company. The MARR for the project is 10 %.

A) Determine the engineering economy symbols and their corresponding value

B) Draw the cash flow diagram

C) Evaluate the present worth of the drug processing company at year 0

D) Calculate the Future worth of the drug process company based on the total number of years consider in the problem statement

E) What is the annual worth of the company

Reference no: EM132055500

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