3. Consider the three mutually exclusive projects in Table 6-3. The firms MARR is 10% per year....
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Question:
3. Consider the three mutually exclusive projects in Table 6-3. The firm’s MARR is 10% per year.
(1) Calculate each project’s PW.
(2) Determine the IRR of each project.
(3) Which project would you recommend?
Table 6-3
| Project 1 | Project 2 | Project 3 |
Investment | $10,000 | $8,500 | $11,000 |
Annual Profit | $5,125 | $4,450 | $5,400 |
Study period (years) | 3 | 3 | 3 |
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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