
Contemporary Engineering Economics 6th Edition by Chan Park
Edition 6ISBN: 978-0134105598
Contemporary Engineering Economics 6th Edition by Chan Park
Edition 6ISBN: 978-0134105598 Exercise 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

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

Explanation
IRR
IRR is internal rate of return, int...
Contemporary Engineering Economics 6th Edition by Chan Park
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