Determine the Investment amount that would achieve the MARR.  Describe how you determined this.   

Fin – below is an income and cash flow statements

To determine the Investment amount to achieve the MARR, we would first need to calculate the present value of all cash flows generated from this investment. The present value formula is PV = CF / (1+r)^t, where CF is the current cash flow, r is the discount rate and t is time period. In our case, given that we have an initial outflow of $10k and a MARR of 10%, we would need to find a corresponding inflow for year 1 that yields a net present value (NPV) of 0 at a 10% discount rate.

We can do this by rearranging our formula: PV = CF/(1+r)^t –> CF = PV*(1+r)^t;
Substituting in our values: CF = 0*(1 + 10%)^1 –> CF = -$10k * 1.10 –>CF= $11k.
Therefore, if we invest an initial amount of $10k with a return on investment of 11k at year one then it will be equal to NPV=0 at 10% MARR.