USW1_WMBA_6050_Week06_Data_FallTerm1.pdf

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Week 6 Assignment Data

Air Scrubbers Furnace Fuel Change

Initial Investment $ 1,350,000 $ 1,385,000

Annual Net Cash Flows $ 225,000 $ 315,000

Annual Net Income $ 135,000 $ 150,000

Project Life 15 years 15 years

Average Book Value $ 675,000 $ 692,500

Cost of Capital 6% 6%