2. Consider the project balances given below for a typical investment project with a service life of four years. (a) Construct the cash flows of the project. (Round to the nearest dollar.) in An Project Balance (B,) - $900 - $900 1 $ - $1,000 $ - $900 3 $362 - $700 $ $0 (b) Find the interest rate i used in calculating the project balances. The interest rate used in calculating the project balances is %. (Round to the nearest whole number.) (c) Would you accept this project if your MARR is 10%? Yes No

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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2. Consider the project balances given below for a typical investment project with a service life of four years.
(a) Construct the cash flows of the project. (Round to the nearest dollar.)
in
An
Project Balance (Bn)
- $900
- $900
1
$
- $1,000
$
- $900
3
$362
- $700
4
$
$0
(b) Find the interest rate i used in calculating the project balances.
The interest rate used in calculating the project balances is
%. (Round to the nearest whole number.)
(c) Would you accept this project if your MARR is 10%?
Yes
No
Transcribed Image Text:2. Consider the project balances given below for a typical investment project with a service life of four years. (a) Construct the cash flows of the project. (Round to the nearest dollar.) in An Project Balance (Bn) - $900 - $900 1 $ - $1,000 $ - $900 3 $362 - $700 4 $ $0 (b) Find the interest rate i used in calculating the project balances. The interest rate used in calculating the project balances is %. (Round to the nearest whole number.) (c) Would you accept this project if your MARR is 10%? Yes No
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