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Given the following project information. If the MARR is 9% and the budget is $40,000, what is the minimum attractive rate of return for the
Given the following project information. If the MARR is 9% and the budget is $40,000, what is the minimum attractive rate of return for the projects selected?
Project | First Cost | Net Annual Revenue | Life (years) | PW at 9% of Benefits | NPV at 9% | EAW at 9% | IRR | B/C ratio at 9% |
---|---|---|---|---|---|---|---|---|
A | $20,000 | $4000 | 10 | $25,671 | $5671 | $884 | 15.1% | 1.28 |
B | 10,000 | 2500 | 8 | 13,837 | 3837 | 693 | 18.6 | 1.38 |
C | 30,000 | 8800 | 5 | 34,229 | 4229 | 1087 | 14.3 | 1.14 |
D | 20,000 | 4100 | 10 | 26,312 | 6312 | 984 | 15.8 | 1.32 |
E | 10,000 | 2800 | 6 | 12,561 | 2561 | 571 | 17.2 | 1.26 |
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