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1) Determine the present worth of the following cash flow, if A-SR 4,000 and Fo=SR 9,000. Assume MARR 10%. A) SR 20,089.53 B) - SR

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1) Determine the present worth of the following cash flow, if A-SR 4,000 and Fo=SR 9,000. Assume MARR 10%. A) SR 20,089.53 B) - SR 11,693.3 C) - SR 15,693.3 D) SR 22,633.0 2-3) A wholesale distributor is considering the construction of a new warehouse and is considered three locations. A summary table of the initial cost and annual income of the three locations. The expected life to be 12 years, and MARR is 15%. Location # Initial cost (SR) 1 Annual income (SR) 1,300,000 1,400,000 900,000 3,000,000 2,800,000 1,500,000 2 3 2) Which one do you prefer based on PBP analysis C) Location 3 D) They are the same A) Location 1 B) Location 2 3) Calculate the DPBP for location 1 A) 4.23 years B) 3.04 years C) 2.53 years D) 5.89 years 4) SR 50,000 is invested in a real state project that gives annual returns of SR 13,000 for 12 years. If MARR is 10% per year. ERR is closest to which of the following: A) 15.37% B) 17.16% C) 10.25% D) 20.37%

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