Consider a project that costs $250 now and is expected to generate $98 in net revenues...
Consider a project that costs $250 now and is expected to generate $98 in net revenues at the end of each of the next three years. If the MARR is 5%, the future worth of this project is __________.
Homework Answers
Answer
Future worth =FV of benefits -FV of costs
FV=PV*(1+i)^n or A*(F|A,i,n)
Future value =98*(F|A,5%,3)-250*(1.05^3)
=98*3.152-289.40625
=19.48975
The future value of the project is $19.49
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