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Prob. 4 Consider the following two projects. Which project would you select on the basis of rate of return, assuming MARR = 15% A2 A1 -9000 -12000 1 900 6000 3500 3400 5500 2300 3200 2800 1200 1600 Select Project = Reason: 23

Prob. 4 Consider the following two projects. Which project would you select on the basis of rate of return, assuming MARR = 15% A2 A1 -9000 -12000 1 900 6000 3500 3400 5500 2300 3200 2800 1200 1600 Select Project = Reason: 23

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Problem 4. Which project would you select on the basis of rate of return, assuming MARR =15%. Please use excel spreadsheet to answer.
Calculate the PW and IRR of this transaction. At the given MARR, is this a good purchase? Initial Investment 15000 Annual Labor savings 8000 Annual maintenance costs 2500 Salvage value N = 6 yrs 2000 PW = MARR = 15% IRR = Good/Bad Prob. 4 Consider the following two projects. Which project would you select on the basis of rate of return, assuming MARR = 15% A2 A1 -9000 -12000 1 900 6000 3500 3400 3 5500 2300 3200 2800 5 1200 1600 Select Project = Reason: stv RA A O DO0 吕0
Transcribed Image Text:Calculate the PW and IRR of this transaction. At the given MARR, is this a good purchase? Initial Investment 15000 Annual Labor savings 8000 Annual maintenance costs 2500 Salvage value N = 6 yrs 2000 PW = MARR = 15% IRR = Good/Bad Prob. 4 Consider the following two projects. Which project would you select on the basis of rate of return, assuming MARR = 15% A2 A1 -9000 -12000 1 900 6000 3500 3400 3 5500 2300 3200 2800 5 1200 1600 Select Project = Reason: stv RA A O DO0 吕0
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