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Consider the following cash flow profile and assume MARR is 10%/year. EOY NCF 0 1 2 3 4 5 6 -$80 $12 $12 $12 $12 $12 $12

Consider the following cash flow profile and assume MARR is 10%/year. EOY NCF 0 1 2 3 4 5 6 -$80 $12 $12 $12 $12 $12 $12

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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**Cash Flow Analysis** Consider the following cash flow profile and assume the Minimum Attractive Rate of Return (MARR) is 10% per year. | EOY | NCF | |-----|------| | 0 | -$80 | | 1 | $12 | | 2 | $12 | | 3 | $12 | | 4 | $12 | | 5 | $12 | | 6 | $12 | - **EOY (End of Year):** Represents the year at the end of which the cash flow occurs. - **NCF (Net Cash Flow):** The net cash inflow or outflow at the end of each year, with negative indicating an outflow and positive indicating an inflow. To perform further financial analysis, click [here](#) to access the TVM Factor Table Calculator. **Problem Part a** Determine the Economic Rate of Return (ERR) for this project. [Input Box] % Use this information to evaluate the potential profitability and financial viability of the project.
Transcribed Image Text:**Cash Flow Analysis** Consider the following cash flow profile and assume the Minimum Attractive Rate of Return (MARR) is 10% per year. | EOY | NCF | |-----|------| | 0 | -$80 | | 1 | $12 | | 2 | $12 | | 3 | $12 | | 4 | $12 | | 5 | $12 | | 6 | $12 | - **EOY (End of Year):** Represents the year at the end of which the cash flow occurs. - **NCF (Net Cash Flow):** The net cash inflow or outflow at the end of each year, with negative indicating an outflow and positive indicating an inflow. To perform further financial analysis, click [here](#) to access the TVM Factor Table Calculator. **Problem Part a** Determine the Economic Rate of Return (ERR) for this project. [Input Box] % Use this information to evaluate the potential profitability and financial viability of the project.
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