Determine the present worth of the project using a MARR of 15% to see if the project is justified.

Assignment 9 – modern manufacturing company cash flow

Present Worth = Initial Cost – (Future Cash Inflows / (1 + MARR)^Year)

Initial Cost: $100,000

MARR: 15%

Future Cash Inflows in year 1: $30,000

Future Cash Inflows in year 2: $50,000

Present Worth = 100,000 – (30,000 / (1.15)^1) – (50,000 / (1.15)^2) = 92,619.78