Problem
A particular capital budgeting project requires an initial investment of $250,000 and has annual O&M costs totaling $20,000. Investment in the project will yield an annual profit of $96,500 for ten years. The salvage value at the end of year 10 is $50,000 1. Calculate the net present value (NV) for this project given a MARR of 10% and an analysis period of 10 years.