# Determine the Investment amount that would achieve the MARR.  Describe how you determined this.

Fin – below is an income and cash flow statements

First, calculate the current value of any cash flows from the investment to determine the amount that will be required to reach the MARR. PV = CF/ (1+r)t. Here CF is the present cash flow, while r represents the discount rate, and t the period. Given that our initial outflow is \$10k with a MARR 10%, it would be necessary to locate an equivalent inflow for the year 1, which yields a net value (NPV), of 0 at 10% discount.

We can do this by rearranging our formula: PV = CF/(1+r)^t –> CF = PV*(1+r)^t;
Substituting in our values: CF = 0*(1 + 10%)^1 –> CF = -\$10k * 1.10 –>CF= \$11k.
If we put down \$10k and get a 11k return, it would equal NPV=0 with 10% MARR.

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