FOR QUESTION NUMBER 21 AND 22 Determine feasibility of the project using IRR and ERR of the project. Is it acceptable? Use &= 15% and MARR =20%. Investment Capital PhP 10,000 Expected life 5 years Market Value -1,000 Annual Receipts 8,000 Annual Expenses 4,000 21. Determine the IRR value of this project, is it acceptable? a. Yes, IRR = 0.3062 b. No, IRR= 0.1981 c. Yes, IRR = 0.3264 d. No, IRR 0.1865 22. Determine the ERR value of this project, is it acceptable? a. No, ERR 0.1810 b. No, ERR= 0.1053 c. Yes, ERR = 0.2380 d. Yes, ERR = 0.2103
FOR QUESTION NUMBER 21 AND 22 Determine feasibility of the project using IRR and ERR of the project. Is it acceptable? Use &= 15% and MARR =20%. Investment Capital PhP 10,000 Expected life 5 years Market Value -1,000 Annual Receipts 8,000 Annual Expenses 4,000 21. Determine the IRR value of this project, is it acceptable? a. Yes, IRR = 0.3062 b. No, IRR= 0.1981 c. Yes, IRR = 0.3264 d. No, IRR 0.1865 22. Determine the ERR value of this project, is it acceptable? a. No, ERR 0.1810 b. No, ERR= 0.1053 c. Yes, ERR = 0.2380 d. Yes, ERR = 0.2103
Chapter1: Making Economics Decisions
Section: Chapter Questions
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
Transcribed Image Text:FOR QUESTION NUMBER 21 AND 22
Determine feasibility of the project using IRR and ERR of the project. Is it acceptable? Use & = 15% and MARR
= 20%.
Investment Capital
PhP 10,000
Expected life
5 years
Market Value
-1,000
Annual Receipts
8,000
Annual Expenses
4,000
21. Determine the IRR value of this project, is it acceptable?
a. Yes, IRR = 0.3062
b. No, IRR= 0.1981
c. Yes, IRR = 0.3264
d. No, IRR 0.1865
22. Determine the ERR value of this project, is it acceptable?
a. No, ERR = 0.1810
b. No, ERR= 0.1053 c. Yes, ERR = 0.2380 d. Yes, ERR = 0.2103
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