Engineering Economy
Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Chapter 8, Problem 37P

(a):

To determine

Calculate the present worth.

(b):

To determine

Calculate the IRR.

(c):

To determine

Calculate the IRR for U.S. dollar.

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7.
What are the Flaws in Project Ranking by IRR?
A project has an initial cost of $65,000, expected net cash inflows of $11,000 per year for 12 years, and a cost of capital of 11%. What is the project's MIRR? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.
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