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PROBLEM #5-20 marks) Ann has received an advance of $30,000 on a software program she is writing. She will spend $210,000 this year writing it
PROBLEM #5-20 marks) Ann has received an advance of $30,000 on a software program she is writing. She will spend $210,000 this year writing it (consider the money to have been spent at the end of year 1, and then receive $180,000 at the end of the second year. The MARR is 10%. ) Based on the MARR rate of 10%, what is the Present worth of the project? (a) -21.481. (b) -12.149. (c) 13.221. (d) 21.481. (e) 39.149 ( Which of the following is a possible value for the IRR of this project? (a) 100% (b) 20000 (c) 300% (d) 400% (e) 500% What is the precise ERR value for this project? (a) 1.06% (b) 1.69% (c)1.99% (d) 2.95% (e) 3.37% What is the approximate ERR value for this project? (c) 4% (a) 690 (b) 5% (d) 3% (e) None ofthe above
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