The following cash flows result from a potential construction project for your company: 1. Receipts of $505,000 at the start of the contract and $1,200,000 at the end of the fourth year 2. Expenditures at the end of the first year of $400,000 and at the end of the second year of $900,000 3. A net cash flow of $0 at the end of the third year. Using an appropriate rate of return method (Approximate ERR), for a MARR of 20%, should your company accept this project (Perform all calculations using 5 significant figures and round your answer to one decimal place. Also remember that text answers are case-sensitive):? Answers entered using text are case sensitive! What is the approximate ERR for this project? Number Should your company undertake this project? (Enter either 'Yes' or 'No'): %

The following cash flows result from a potential construction project for your company: 1. Receipts of $505,000 at the start of the contract and $1,200,000 at the end of the fourth year 2. Expenditures at the end of the first year of $400,000 and at the end of the second year of $900,000 3. A net cash flow of $0 at the end of the third year. Using an appropriate rate of return method (Approximate ERR), for a MARR of 20%, should your company accept this project (Perform all calculations using 5 significant figures and round your answer to one decimal place. Also remember that text answers are case-sensitive):? Answers entered using text are case sensitive! What is the approximate ERR for this project? Number Should your company undertake this project? (Enter either 'Yes' or 'No'): %

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The following cash flows result from a potential construction project for your company:
1. Receipts of $505,000 at the start of the contract and $1,200,000 at the end of the fourth year
2. Expenditures at the end of the first year of $400,000 and at the end of the second year of $900,000
3. A net cash flow of $0 at the end of the third year.
Using an appropriate rate of return method (Approximate ERR), for a MARR of 20%, should your company accept this project
(Perform all calculations using 5 significant figures and round your answer to one decimal place. Also remember that text
answers are case-sensitive):?
Answers entered using text are case sensitive!
What is the approximate ERR for this project? Number
Should your company undertake this project? (Enter either 'Yes' or 'No'):
%

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