A small investment project involves two alternatives. The cash flow for each one is given below. Alternative Capital investment -$60,000 -$73,000 Annual net revenue $22,000 $26,000 The useful life of each alternative and the study period is four years. Also, assume that the MARR = 10% per year. Use the IRR (Internal rate of Return) method and increment analysis to decide on which one, if any to be selected. %3D

A small investment project involves two alternatives. The cash flow for each one is given below. Alternative Capital investment -$60,000 -$73,000 Annual net revenue $22,000 $26,000 The useful life of each alternative and the study period is four years. Also, assume that the MARR = 10% per year. Use the IRR (Internal rate of Return) method and increment analysis to decide on which one, if any to be selected. %3D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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