The present value of gain on the CNC investment is 13, 680.
How to calculate gain or loss on investment when MARR is given?
To calculate the present value of loss or gain on the CNC investment, the following calculations as given in the table below are to be made.
Hence, by substracting the sum of cash inflow or revenue from CNC over 9 years and the final selling price from the initial investment gives out 13, 680 dollars (which is gain from investment on CNC).
Gain on CNC investment = -35, 000 + 48678.16 = 13,678.16 (approximately 13, 630 dollars).
What is MARR?
The Minimum Acceptable Rate of Return (MARR) or discount rate is minimum rate of return at which an individual or a company would make a decision to invest on an asset or a project.
To know more about Minimum Acceptable Rate of Return, check out:
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