What is the present worth of project

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1) Octavia is looking at an investment in upgrading an inspection line at her plant. The initial cost would be $140,000 with a salvage value of $37,000 after five years. How much money must be saved every year to justify the invest at an interest rate of 14%?

2) Margaret has a project with $28,000 first cost that returns $5,000 per year over 10-year life. It has a salvage value of $3,000 at the end of 10 years. If the MARR is 15%, what is the present worth of this project?

Reference no: EM131286057

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