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4 Consider a project that costs 200 now and is expected to g

4. Consider a project that costs $200 now and is expected to generate $77.60 in net revenues at the end of each of the next three years. If the MARR is 4%, the future worth of this project is a. $3. b. $17 C.$33 d. $45 e. $49 (SEE REVERSE SIDE FOR MORE PROBLEMS)

Solution

Ans: $17

Explanation:

FW = -200(F/P, 4%, 3) + 77.60(F/A, 4%, 3)

      = -200(1.125) + 77.60(3.122)

      = -225 + 242

      = $17

4. Consider a project that costs $200 now and is expected to generate $77.60 in net revenues at the end of each of the next three years. If the MARR is 4%, the

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