Time left 1:29:03 Grand River Plus Inc. is evaluating a possible investment in a new passenger...
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Time left 1:29:03 Grand River Plus Inc. is evaluating a possible investment in a new passenger river boat, in order to expand its offerings of river tours. Analysis of the projected cash flows revealed the following information: Annual Worth of $16,000; Rate of Return of 18%; MARR of 15%. The proposal should be a. Rejected because the Rate of Return is greater than the MARR. O b. Accepted because the Rate of Return is greater than the MARR. O c. Accepted because the Rate of Return is greater than the Annual Worth (in thousands). O d. Rejected because the Rate of Return is greater than the Annual Worth (in thousands). Time left 1:29:03 Grand River Plus Inc. is evaluating a possible investment in a new passenger river boat, in order to expand its offerings of river tours. Analysis of the projected cash flows revealed the following information: Annual Worth of $16,000; Rate of Return of 18%; MARR of 15%. The proposal should be a. Rejected because the Rate of Return is greater than the MARR. O b. Accepted because the Rate of Return is greater than the MARR. O c. Accepted because the Rate of Return is greater than the Annual Worth (in thousands). O d. Rejected because the Rate of Return is greater than the Annual Worth (in thousands).
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ANSWER The proposal should be accepted because the rate of return is greater than the MARR The pro... View the full answer
Related Book For
Contemporary Financial Management
ISBN: 9780324289114
10th Edition
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
Posted Date:
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