.A company is evatuating fottowing 4 mutually evclushvr all projects ha will cycle of 4 yearUse ROR method to decide on the tbest project. Use 10. tot MAI.tnitialSalvageProjectinvestmentAOCvalueA620004800010000B112000380003000082000420001500078000600001000012

The ROR(Rate of Return) method is also known as the annual rate of return. The rate of return is…

.A company is evaluating fottowing 4 mutuatly exclustve all projects ha will cycle of 4 year Use ROR method to decide on the best project. Use 10 tor MAR. Initial investment Salvage value Project AOC A 62000 48000 10000 B 112000 38000 30000 82000 42000 15000 78000 60000 10000 12

.A company is evaluating fottowing 4 mutuatly exclustve all projects ha will cycle of 4 year Use ROR method to decide on the best project. Use 10 tor MAR. Initial investment Salvage value Project AOC A 62000 48000 10000 B 112000 38000 30000 82000 42000 15000 78000 60000 10000 12

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

.A company is evatuating fottowing 4 mutually evclushvr all projects ha will cycle of 4 year
Use ROR method to decide on the tbest project. Use 10. tot MAI.
tnitial
Salvage
Project
investment
AOC
value
A
62000
48000
10000
B
112000
38000
30000
82000
42000
15000
78000
60000
10000
12

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