question archive In the application of a waste heat boiler project, a fixed income of 7,500 USD occurs each year
In the application of a waste heat boiler project, a fixed income of 7,500 USD occurs each year
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In the application of a waste heat boiler project, a fixed income of 7,500 USD occurs each year. At the end of a 12-year study, considering that the interest rate is 15% during this period, which of the following is the present value (USD) of the earning to be obtained? (Present value coefficient for 15% interest and 12 years is 5,421) 48.965 d. 34.663 b. 53.850 C. 40.657 d. None e
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Fixed income is same every year i.e. 7,500 USD
Life of the project is 12 years
Interest rate is 15%.
Present value = Fixed income × Present value coefficient (Present value coefficient is given in the question i.e. 5.421)
Present value = 7500 × 5.421
Present value = 40,657.5 USD
So Answer is Option D, 40,657
