Purchase Solution

# Evaluating the given investment proposal

Not what you're looking for?

Following are the cash flows (equal in years 1-5) and a MARR for a proposal.

MARR=14%
Year 0 1 2 3 4 5
Cash Flow (\$3,250) \$500 \$750 \$1,100 \$1,500 \$1,200

a. Determine the Present Worth. Based on this, should the proposal be approved or rejected?
b. Determine the Future Worth. Based on this, should the proposal be approved or rejected?
c. Determine the Annual Worth. Based on this, should the proposal be approved or rejected?
d. Determine the Internal Rate of Return. Based on this, should the proposal be approved or rejected?
e. Determine if this proposal should be accepted using a 4-year discounted payback period criterion.

##### Solution Summary

Solution analyzes the given investment proposal by PW, FW, AW, IRR and Payback period methods.

Solution provided by:
###### Education
• BEng (Hons) , Birla Institute of Technology and Science, India
• MSc (Hons) , Birla Institute of Technology and Science, India
###### Recent Feedback
• "Thank you"
• "Really great step by step solution"
• "I had tried another service before Brain Mass and they pale in comparison. This was perfect."
• "Thanks Again! This is totally a great service!"
• "Thank you so much for your help!"

##### Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

##### Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.