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Haversham Consulting is taking on a big project with a lifespan of 19 years. Start-up costs are estimated to be $596926. Annual expenses will be $234102, projected to increase by 6% each year. The project will take place in different phases. During the first 4 years, revenue is projected to be $412894 per year. Revenue will then increase to $834793 per year for the next 7 years. For the remainder of the project, revenue will be $1244243 per year.  A bonus of $393230 will be received at the end of the project. Using an interest rate of 6%, what is the equivalent uniform annual worth of the project?

Hint: Count the years carefully for the last years of revenue.

Enter your answer as 1234

Round your answer. Do not use a dollar sign ("$"), any commas (","), or a decimal point (".").

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92714538

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