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Question 1 (20 points) a) A company has three different projects that it is considering. Use ROR analysis and a MARR of 15% to determine
Question 1 (20 points) a) A company has three different projects that it is considering. Use ROR analysis and a MARR of 15% to determine which projects should be completed? Show all your work including determining number of possible i" values and listing all i' values. (Guess between -90% and 100% with increment of 10%) Project 1: Initial costs of $500,000 followed by an annual income of $150,000 for 7 years. Project 2: Initial costs of $1,000,000 with upkeep costs of $500,000 every five years (5, 10, etc.). Annual income of $100,000 in year 1 increasing by 10%. Lifespan of 16 years. Project 3: Initial costs of $500,000 with upkeep costs of $250,000 every 4 years (4,8, etc.). Annual income of $75,000 in year 1 increasing by $5,000 a year. Lifespan of 15 years. Question 1 (20 points) a) A company has three different projects that it is considering. Use ROR analysis and a MARR of 15% to determine which projects should be completed? Show all your work including determining number of possible i" values and listing all i' values. (Guess between -90% and 100% with increment of 10%) Project 1: Initial costs of $500,000 followed by an annual income of $150,000 for 7 years. Project 2: Initial costs of $1,000,000 with upkeep costs of $500,000 every five years (5, 10, etc.). Annual income of $100,000 in year 1 increasing by 10%. Lifespan of 16 years. Project 3: Initial costs of $500,000 with upkeep costs of $250,000 every 4 years (4,8, etc.). Annual income of $75,000 in year 1 increasing by $5,000 a year. Lifespan of 15 years
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