PW: Smallest acceptable benefit
If you have an asset that costs $50 in year zero and face a MARR of 15%, what is the smallest benefit you could receive in period 15 and still find the investment acceptable?
Answer:
Did this one on the calculator using tvm solver:
N=15
I%=15
PV=-50
PMT=0
so the FV is $406.85
If the MARR was higher, the acceptable payout would also be higher.
If the MARR was lower, the acceptable payout would also be lower.
page revision: 3, last edited: 08 Nov 2015 21:24