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A company wants to analyze the following investment option using its rate of return. They use a MARR of 15% to determine whether something might
A company wants to analyze the following investment option using its rate of return. They use a MARR of 15% to determine whether something might be a good investment in this category.
a) Calculate the accurate internal rate of return for the given cash flow as exact as possible, interpolating as necessary. The MARR is a good first estimate.
b) Decide if the investment should be made, and explain why it should.
Initial Costs Annual Benefits Operation and Maintenance Salvage Value Lifetime in years Cash Flow $400,000 $110,000 $30,000 $20,000 10Step by Step Solution
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