Six sites have been identified for a parking lot in downtown Beirut. Because the sites are plots of land, their salvage value and investment cost are identical. A 10-year study period has been specified, and the MARR is 18% per year. (Figures below are in thousands of dollars). Press A B C D E F Capital Investment $100 $150 $250 $400 $500 $700 Annual Revenues minus Expenses $15 $37.5 $50 $92.5 $112.5 $142.5 If the MARR=18%, Which site should be chosen ? On the same excel spreadsheet use the following methods: a- Present Worth b- Annual Worth C- IRR
Six sites have been identified for a parking lot in downtown Beirut. Because the sites are plots of land, their salvage value and investment cost are identical. A 10-year study period has been specified, and the MARR is 18% per year. (Figures below are in thousands of dollars). Press A B C D E F Capital Investment $100 $150 $250 $400 $500 $700 Annual Revenues minus Expenses $15 $37.5 $50 $92.5 $112.5 $142.5 If the MARR=18%, Which site should be chosen ? On the same excel spreadsheet use the following methods: a- Present Worth b- Annual Worth C- IRR
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Six sites have been identified for a parking lot in downtown Beirut. Because the sites
are plots of land, their salvage value and investment cost are identical. A 10-year
study period has been specified, and the MARR is 18% per year. (Figures below are
in thousands of dollars).
Press
A
B
C
D
E
F
Capital Investment
$100
$150
$250
$400
$500
$700
Annual Revenues minus Expenses
$15
$37.5
$50
$92.5
$112.5
$142.5
If the MARR=18%, Which site should be chosen ?
On the same excel spreadsheet use the following methods:
a- Present Worth
b- Annual Worth
C- IRR
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