Investment cost 28000 $ Annual cost 15000 $ Annual revenue 23000 $ Salvage value 6000 $ N 10 O a. Yes this investment profitable because i' is almost equal to 21% which is > MARR Ob. Yes this investment profitable because i' is almost equal to 33% which is > MARR Oc. No this investment is not profitable because i' is almost equal to 13% which is < MARR Od. Yes this investment profitable because i' is almost equal to 31% which is > MARR De. f. g No this investment is not profitable because i' is almost equal to 17% which is < MARR No this investment is not profitable because i' is almost equal to 5% which is < MARR Yes this investment profitable because i' is almost equal to 26% which is > MARR For the following investment if MARR is equal to 20%, according to Internal Rate of Return (IRR) method is this investment profitable.
Investment cost 28000 $ Annual cost 15000 $ Annual revenue 23000 $ Salvage value 6000 $ N 10 O a. Yes this investment profitable because i' is almost equal to 21% which is > MARR Ob. Yes this investment profitable because i' is almost equal to 33% which is > MARR Oc. No this investment is not profitable because i' is almost equal to 13% which is < MARR Od. Yes this investment profitable because i' is almost equal to 31% which is > MARR De. f. g No this investment is not profitable because i' is almost equal to 17% which is < MARR No this investment is not profitable because i' is almost equal to 5% which is < MARR Yes this investment profitable because i' is almost equal to 26% which is > MARR For the following investment if MARR is equal to 20%, according to Internal Rate of Return (IRR) method is this investment profitable.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:Investment cost
28000 $
Annual cost
15000 $
Annual revenue
23000 $
Salvage value
6000 $
N
10
O a.
Yes this investment profitable because i' is almost equal to 21% which is > MARR
Ob. Yes this investment profitable because i' is almost equal to 33% which is > MARR
Oc. No this investment is not profitable because i' is almost equal to 13% which is < MARR
Od. Yes this investment profitable because i' is almost equal to 31% which is > MARR
De.
f.
g
No this investment is not profitable because i' is almost equal to 17% which is < MARR
No this investment is not profitable because i' is almost equal to 5% which is < MARR
Yes this investment profitable because i' is almost equal to 26% which is > MARR
Transcribed Image Text:For the following investment if MARR is equal to 20%, according to Internal Rate of Return (IRR) method is this
investment profitable.
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