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A) You will recieve annual benefit $129.5 for 10 years if you invest $1,000 today. Calculate the internal rate of return for this investment.

B) For the above a, you can get an increase of annual benefit $25 more if you increase the investment by $141.25 today. Calculate the internal rate of return for this incremental cash flow. When your MARR is 4%, decide if this increment of investment is acceptable or not.

C) For the above a, you can get the annual benefit $90 for an infinite period. Calculate the internal rate of return and decide if it is acceptable or not acceptable. MARR 4%.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M92201584

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