Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Example: For MARR=15% per year and b=$18 million, select from the following independent
projects using a) PW, b) IROR, c) PI.
Projects
1
Investment, NCF, $1000
-8,000
NCF, $1000 per year
4,000
6
Life nj, years
IROR, %
44.5
PI
PW at 15%, $1000
1.89
7,138
2
-15,000
2,900
9
En 12.8
0.92
-1,162
3
-8,000
2,700
5
20.4
1.13
1,051
-8,000
2,500
4
9.6
0.89
-863
5
-5,000
2,600
3
26.0
1.19
936
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