Question
For a one-year project with an investment of $1000 and a MARR = 12%, the PW...
For a one-year project with an investment of $1000 and a MARR = 12%, the PW of this project is $150. How much is the internal rate of return (IRR) of this project?
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Consider the three mutually exclusive projects that follow. The firm's MARR is 9% per year. EOY ...
Consider the three mutually exclusive projects that follow. The
firm's MARR is 9% per year.
EOY
Project 1
Project 2
Project 3
0
−$10,000
−$9,000
−$10,000
1−3
$5,130.54
$4,713.45
$4,926.60
a. Calculate each project's PW.
PW1 =$___________(Round to the nearest dollar.)
PW2=$____________(Round to the nearest dollar.)
PW3=$____________(Round to the nearest dollar.)
b. Determine the IRR of each project.
IRR1=_________%.(Round to one decimal place.)
IRR2=_________%.(Round to one decimal place.)
IRR3=_________%.(Round to one decimal place.)
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Consider the independent investment projects in the table below. MARR=9% per year. Project Cash...
Consider the independent investment projects in the table
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Project Cash
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n A B C
0 -$250 -$120 $135
1 $50 $70 -$45
2 $50 $70 -$45
3 $50 $70 -$45
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n
Net Cash Flow
0
-$1000
1
$1400
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-$100
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t/f The minimum attractive rate of return (MARR) for a business is independent of the internal...
t/f
The minimum attractive rate of return (MARR) for a business is
independent of the internal rate of return (IRR) of an
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For the project shown below , if MARR is 12% , answer the following : (a)...
For the project shown below , if MARR is 12% , answer the
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- Investment = $15,000
- Expected life = 6 years
- Saving (SV) = $ 2000
- Annual receipts ( returns ) = $ 11,000
- Annual expenses = $ 6000
Variables Project 236 Project 264 Interest Rate 12.5% 12.5% MARR 15% 15% Project Life (years) 15...
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Project 236
Project 264
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12.5%
12.5%
MARR
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15%
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15
15
Cash Flows/Year
0
(64,000)
(58,000)
1
12,500
11,589
2
12,500
11,995
3
12,500
12,414
4
12,500
12,849
5
12,500
13,299
6
12,500
13,764
7
12,500
14,246
8
12,500
14,744
9
12,500
15,260
10
12,500
15,795
11
12,500
16,347
12
12,500
16,920
13
12,500
17,512
14
12,500
18,125
15
12,500
18,759
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follows.
EOY
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minus−$117 comma 000117,000
1
19 comma 00019,000
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33 comma 00033,000
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25 comma 00025,000
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5
38 comma 00038,000
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