
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 8
Consider the cash flows for the investment projects given in Table.
Assume that the MARR = 12%.
(a) Suppose A, B. and C are mutually exclusive projects. Which project would be selected on the basis of the IRR criterion
(b) What is the borrowing rate of return (BRR) for project D
(c) Would you accept project D at MARR = 20%
(d) Assume that projects C and E are mutually exclusive. Using the IRR criterion, which project would you select
Table

Assume that the MARR = 12%.
(a) Suppose A, B. and C are mutually exclusive projects. Which project would be selected on the basis of the IRR criterion
(b) What is the borrowing rate of return (BRR) for project D
(c) Would you accept project D at MARR = 20%
(d) Assume that projects C and E are mutually exclusive. Using the IRR criterion, which project would you select
Table

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