Four mutually exclusive projects are being considered for a new two-mile jogging track. The life of the track is expected to be 80 years, and the sponsoring agency's MARR is 12% per year. Annual benefits to the public have been estimated by an advisory committee and are shown below. Use the IRR method to select the best jogging track. Alternative A B D Initial Cost $62,000 $52,000 $150,000 $55,000 Annual benefits $10,000 $8,000 $20,000 $9,000 IR 16.1% 15.4%
Four mutually exclusive projects are being considered for a new two-mile jogging track. The life of the track is expected to be 80 years, and the sponsoring agency's MARR is 12% per year. Annual benefits to the public have been estimated by an advisory committee and are shown below. Use the IRR method to select the best jogging track. Alternative A B D Initial Cost $62,000 $52,000 $150,000 $55,000 Annual benefits $10,000 $8,000 $20,000 $9,000 IR 16.1% 15.4%
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Four mutually exclusive projects are being considered for a new two-mile jogging track. The life of the track is expected to be 80
years, and the sponsoring agency's MARR is 12% per year. Annual benefits to the public have been estimated by an advisory
committee and are shown below. Use the IRR method to select the best jogging track.
Alternative
A
B
D
Initial Cost
$62,000
$52,000
$150,000
$55,000
Annual benefits
$10,000
$8,000
$20,000
$9,000
IRR
16.1%
15.4%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F089ef347-cd75-45c4-8c86-b5fbb3d621c3%2F88bd7b2f-6782-49c4-925e-1ddfc1af0e27%2Fuqkb5a6_processed.png&w=3840&q=75)
Transcribed Image Text:Four mutually exclusive projects are being considered for a new two-mile jogging track. The life of the track is expected to be 80
years, and the sponsoring agency's MARR is 12% per year. Annual benefits to the public have been estimated by an advisory
committee and are shown below. Use the IRR method to select the best jogging track.
Alternative
A
B
D
Initial Cost
$62,000
$52,000
$150,000
$55,000
Annual benefits
$10,000
$8,000
$20,000
$9,000
IRR
16.1%
15.4%
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