Contemporary Engineering Economics 6th Edition by Chan Park

تمرين 42

Consider the cash flows of a certain project given in Table.
The project's i* s are computed as 10% and 100%. respectively. The firm's MARR is 8%.
(a) Show why this investment project fails the net-investment test.
(b) Compute the IRR, and determine the acceptability of this project.
(c) Compute the MIRR at MARR = 8%, and determine the acceptability of the project.
Table