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The following table contains the summary of how a project's balance changes over its 5- year service life at 10% interest (MARR). End of period Project Balance $-1,000 $-1,500 $600 2 3 $900 $1,500 $2,000 4 5 Which of the following statements is incorrect?

The following table contains the summary of how a project's balance changes over its 5- year service life at 10% interest (MARR). End of period Project Balance $-1,000 $-1,500 $600 2 3 $900 $1,500 $2,000 4 5 Which of the following statements is incorrect?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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The following table contains the summary of how a project's balance changes over its 5- year service life at 10% interest (MARR). End of period Project Balance S-1,000 S-1,500 $600 1 3 $900 $1,500 $2,000 4 5 Which of the following statements is incorrect? Select one: a. The required additional investment at the end of period 1 is $500 b. The net present worth of the project at 10% interest is $1,242 c. The rate of return of the project should be greater than 10% d. The net future worth of the project at 10% interest is $2,000
Transcribed Image Text:The following table contains the summary of how a project's balance changes over its 5- year service life at 10% interest (MARR). End of period Project Balance S-1,000 S-1,500 $600 1 3 $900 $1,500 $2,000 4 5 Which of the following statements is incorrect? Select one: a. The required additional investment at the end of period 1 is $500 b. The net present worth of the project at 10% interest is $1,242 c. The rate of return of the project should be greater than 10% d. The net future worth of the project at 10% interest is $2,000
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