Question: no explanation needed just final answer 31. At the beginining of 2012. your corrpany purchased an equipment for $50000. in January 2021, the same equipment
31. At the beginining of 2012. your corrpany purchased an equipment for $50000. in January 2021, the same equipment costs $65200. The average intlation rate over this period is close to: a) 5% b) 2% c) 3% d) 4% 32. Your firm spends $500,000 per yoar (end of the year payment) in regular maintonance of its equipment. Due to the COVID-19 economic downtum, the firm considers forgoing these maintenance expenses for the next three years. It it does so. It expects it will need to spend \$2. milion in yoar 4 (end of the year payment) replacing failed equipment. Does the IRR rule work for this decision?, For what MARR is forgoing maintenance a good decision? a) IRR nule does not work, Positive NPW only it MARR >15.09% b) IRR rule works, Positive NPW only if MARR>15.09\% c) IRR rule works, Positive NPW only if MARR 15.09% d) IRR rule does not work, Positive NPW only if MARR C(B) and project A has been selected. Which of the following is correct? a) IRR(A)>RR(B) b) IRR(A)SIRR(B) c) ARR(AB)MARR d) MARR IRR(A-B)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
