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Advanced Modular Technology (AMT) makes energy cleaner, safer, more secure and more efficient. It typically exhibits net annual revenues that increase over a fairly long
Advanced Modular Technology (AMT) makes energy cleaner, safer, more secure and more efficient. It typically exhibits net annual revenues that increase over a fairly long period. In the long run, an AMT project may be profitable as measured by IRR, but its simple payback period may be unacceptable. Evaluate this AMT project using the IRR method when the company MARR is 14% per year and its maximum allowable payback period is three years. What is your recommendation? Capital investment at time 0 Net revenues in year k $109,000 $21,000+ $9,000 (k-1) $10,000 5 years Market (salvage) value Life The internal rate of return is%. (Round to one decimal place.) The simple payback period is years. (Round to the nearest whole number.) This project is
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