Four projects are given in the table below. Assume MARR = 12% and n = 8 for all projects shown. B C Investment 7500 8000 5800 5000 Annual Return 1500 1700 1200 1000 Salvage Value 1000 1500 1500 1200 a. What is the PW of Project B? Round to the nearest integer. b. In what order should you compare the alternatives? c. Calculate the value for IRR(A-C). Round your answer to the nearest percentage. d. Which of the projects are defenders at some point in determining the project to pursue? e. Which project do you recommend pursuing?

Four projects are given in the table below. Assume MARR = 12% and n = 8 for all projects shown. B C Investment 7500 8000 5800 5000 Annual Return 1500 1700 1200 1000 Salvage Value 1000 1500 1500 1200 a. What is the PW of Project B? Round to the nearest integer. b. In what order should you compare the alternatives? c. Calculate the value for IRR(A-C). Round your answer to the nearest percentage. d. Which of the projects are defenders at some point in determining the project to pursue? e. Which project do you recommend pursuing?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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