The required investment cost of a new, large shopping center is $50 million. the salvage value of the project is estimated to be $15 million (the value of the land). the project's life is 19 years and the annual operating expenses are estimated to be $14 million. the marr for such projects is 12% per year. what must the minimum annual revenue be to make the shopping center a worthwhile venture?

The minimum annual revenue be to make the shopping center a worthwhile venture is $20.55 million.

Explanation:

The required investment cost of a new, large shopping center is $50 million.

The salvage value of the project is estimated to be $15 million.

The project's life is 19 years and the annual operating expenses are estimated to be $14 million.

The MARR for such projects is 12% per year.

Suppose the minimum annual revenue is x.

We will use the compound interest table to find the value of cash flows.

Present value of cash inflows = Present value of cash outflows

7.366x + 1.7415 = 50 + 103.124

7.366x = 151.3825

x = $20.55

Minimum annual revenue = $20.55

answer; (a) conduct a worksite inspection;