A sports center is planning to construct a set of three tennis courts. The hourly rental...

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A sports center is planning to construct a set of three tennis courts. The hourly rental fees (and therefore the annual profit) depend on the quality of the court. The tender call requires the courts to have a life of 40 years, and three bids are received. The costs and expected annual benefits for these three alternatives are as follows: Initial cost Annual profit Court type A 750,000 44000 Court type B 600,000 40000 Court type C 800000 70000 (a) Calculate the IRR for each of the choices (b) Assume that the MARR of the sports center is 5.5%. Which of the courts (if any) should the center build? A sports center is planning to construct a set of three tennis courts. The hourly rental fees (and therefore the annual profit) depend on the quality of the court. The tender call requires the courts to have a life of 40 years, and three bids are received. The costs and expected annual benefits for these three alternatives are as follows: Initial cost Annual profit Court type A 750,000 44000 Court type B 600,000 40000 Court type C 800000 70000 (a) Calculate the IRR for each of the choices (b) Assume that the MARR of the sports center is 5.5%. Which of the courts (if any) should the center build?

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a Calculate the IRR for each choices as follows Court Ty... View the full answer