1. EncryptCo has a project that has a $42,000 first cost that returns $9,500 per...
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1. EncryptCo has a project that has a $42,000 first cost that returns $9,500 per year over its 12 year life. The salvage value after 12 years is $7,000. The MARR is 4% nominal annual compounded quarterly. (a) Calculate the present value of this project. (4 marks) (b) Calculate the annual worth of this project. (4 marks) (c) Calculate the payback period of this project. (3 marks) (d) Calculate the discounted payback period of this project using Excel. Copy the Excel output into your assignment. ( 3 marks) 1. EncryptCo has a project that has a $42,000 first cost that returns $9,500 per year over its 12 year life. The salvage value after 12 years is $7,000. The MARR is 4% nominal annual compounded quarterly. (a) Calculate the present value of this project. (4 marks) (b) Calculate the annual worth of this project. (4 marks) (c) Calculate the payback period of this project. (3 marks) (d) Calculate the discounted payback period of this project using Excel. Copy the Excel output into your assignment. ( 3 marks)
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