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An engineer performed the incremental Rate of Return analysis to select one of the two projects A and B. Since project B had a higher
An engineer performed the incremental Rate of Return analysis to select one of the two projects A and B. Since project B had a higher investment the Engineer calculated the increment B-A which is shown below: Year 0 1 2 3 4 5 6 7 8 9 10 B-A -70 13 13 46 7 180 170-204 -204 19 -11 a) Find the values of AIRA b) If ib = 5.5% and li = 13% and MARR is 15% use the MIRR method to find the EROR, and which alternative to select? c) Use Excel for plotting the A1 BA VS. PW An engineer performed the incremental Rate of Return analysis to select one of the two projects A and B. Since project B had a higher investment the Engineer calculated the increment B-A which is shown below: Year 0 1 2 3 4 5 6 7 8 9 10 B-A -70 13 13 46 7 180 170-204 -204 19 -11 a) Find the values of AIRA b) If ib = 5.5% and li = 13% and MARR is 15% use the MIRR method to find the EROR, and which alternative to select? c) Use Excel for plotting the A1 BA VS. PW
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