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Problem: A pharmaceutic engineer started a small-scale drug processing company for the production of Aloe Vera extract with an initial investment of $750 000. The company only broke even (no profit) the first 3 years of its start-up, but years 4 through 8, it made a profit of $ 1,075,000 per year and after which the profit was observed to increase by a constant amount of $135000 for the next four years. It cost the company an aggregate sum of $620,000 per year to maintain and run the company. The MARR for the project is 10 %.

A) Determine the engineering economy symbols and their corresponding value

B) Draw the cash flow diagram

C) Evaluate the present worth of the drug processing company at year 0

D) Calculate the Future worth of the drug process company based on the total number of years consider in the problem statement

E) What is the annual worth of the company

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M93042977

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