Based on PW values, determine which of the following independent projects should be selected for investment if $240,000 is available and the MARR is 10% per year. (NCF = net cash flow) 8 ed on PW values, determine which of the following independent projects should be selected for* on PW values, determine which of the following independent projects should be selected forBstment if $240,000 is available and the MARR is 10% per year. (NCF = net cash flow)%3DProjectInitial Investment, $NCF, S/Year50,00024,000Life, YearsA8.-100,000-125,000-120,000-220,000-200,000B8.8.75,00039,00082,000C8.E8.

Present worth (PW) can be calculated by using the following formula. Time period is indicated by…

d on PW values, determine which of the following independent projects should be selected for stment if $240,000 is available and the MARR is 10% per year. (NCF = net cash flow) %3D Initial Investment, S -100,000 Project NCF, S/Year 50,000 24,000 75,000 39,000 82,000 Life, Years 8. A 8. -125,000 -120,000 -220,000 -200,000 8. 8. E 8.

d on PW values, determine which of the following independent projects should be selected for stment if $240,000 is available and the MARR is 10% per year. (NCF = net cash flow) %3D Initial Investment, S -100,000 Project NCF, S/Year 50,000 24,000 75,000 39,000 82,000 Life, Years 8. A 8. -125,000 -120,000 -220,000 -200,000 8. 8. E 8.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Based on PW values, determine which of the following independent projects should be selected for investment if $240,000 is available and the MARR is 10% per year. (NCF = net cash flow) Project Initial Investment, $ NCF, $/Year Life, Years A −100,000 50,000 8 B −125,000 24,000 8 C −120,000 75,000 8 D −220,000 39,000 8 E −200,000 82,000 8
Rincon, LLC is considering a project that will require an initial investment of $750,000 with estimated net income of $135,000 per year for 10 years. (a) Determine the IROR, PI, and PW values at MARR = 12% per year. (b) For which of these measures is the project economically justified? (c) Reflect on the answers above and the breakeven i*. Is there any MARR value that will cause any of the three measures to result in different conclusions about the economic viability of the project? Explain your answer.