Question
A surveying company has the following investment opportunitie ID Investment opportunity Cost Rate of Return 1 Fix existing equip/ 1000 10% 2 Buy electronic dist.
A surveying company has the following investment opportunitie
| ID | Investment opportunity | Cost | Rate of Return |
| 1 | Fix existing equip/ | 1000 | 10% |
| 2 | Buy electronic dist. meas. equip. | 2500 | 2% |
| 3 | Buy new printer | 3000 | 5% |
| 4 | Buy equip. for additional crew | 3000 | 7% |
| 5 | Buy small computer | 800 | 20% |
Suppose the company has $5000 in an interest-bearing account, with an interest rate of 3%. What is the MARR? If the company can borrow money at 5%, how much should be borrowed to realize which additional investment opportunities? Assume a common horizon of 1 year for the analysis, i.e., dont consider discounting
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Audit Education
Authors: Karen Van Peursem, Elizabeth Monk, Richard M.S. Wilson, Ralph Adler
1st Edition
1138192856, 978-1138192850
