You are considering five projects, all of which can be considered to last indefinitely. If the companys

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You are considering five projects, all of which can be considered to last indefinitely. If the company€™s MARR is 15% per year, determine which should be selected if they are

(a) Independent projects,

(b) Mutually exclusive alternatives.

Net Annual Income, $ First Cost, $ Alternative ROR, % A -20,000 +3,000 15.0 B -10,000 +2,000 20.0 18.7 -15,000 +2,800 D

MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...
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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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