Question: Rincon, LLC is considering a project that will require an initial investment of $750,000 with estimated net income of $135,000 per year for 10 years.

Rincon, LLC is considering a project that will require an initial investment of $750,000 with estimated net income of $135,000 per year for 10 years.

(a) Determine the IROR, PI, and PW values at MARR = 12% per year.

(b) For which of these measures is the project economically justified?

(c) Reflect on the answers above and the breakeven i*. Is there any MARR value that will cause any of the three measures to result in different conclusions about the economic viability of the project? Explain your answer.

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