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Question: 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 $135,000 for the next four years. It cost the company an aggregate sum of $620,000 per year to maintain and run the company. MARR = 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

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92868978

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