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IV.3. You are considering 4 options for a new building. Each building option has different costs and different annual benefits. You are planning on selling
IV.3. You are considering 4 options for a new building. Each building option has different costs and different annual benefits. You are planning on selling the property in 8 years, so to you it has a life of 8 years. The Minimum acceptable rate of return (MARR) you will accept is 7%. Show your work and place A,B,C or D in the box (Hint: (P/A,6%,8)=6.2098) Choice: a) Calculate the Internal Rate of Return for each alternate. You can report interest values rounded to the nearest 2%. b) Using incremental IRR, show how you could identify the best alternative (Show your work and/or justification): IV.3. You are considering 4 options for a new building. Each building option has different costs and different annual benefits. You are planning on selling the property in 8 years, so to you it has a life of 8 years. The Minimum acceptable rate of return (MARR) you will accept is 7%. Show your work and place A,B,C or D in the box (Hint: (P/A,6%,8)=6.2098) Choice: a) Calculate the Internal Rate of Return for each alternate. You can report interest values rounded to the nearest 2%. b) Using incremental IRR, show how you could identify the best alternative (Show your work and/or justification)
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