question 20

QUESTION 17 Based on Ch7-IRR: The following questions are related to this scenario: For the following 2 projects, use an MARR of 20%. B Investment: $42,000 Useful Life: 5-years 5-years Annual revenue: $7,000 $15,000 Salvage value: $5,000 $0 $22,000 Calculate the rate of return for project A. a) 20% ob) 22% od) 23.25% d) 25.35% QUESTION 18 Calculate the rate of return for project B. . a) 20% - b) 22% oc) 23.25% d) 2535 QUESTION 19 Calculate the rate of return for the incremental project AB-A. oa) 20% b) 22% oC) 23.25% od) 25.35% QUESTION 20 Which of the above two projects (if any) you would consider investing in? . a) Project A ob) Project B c) Neither projects are financially successful d) Invest in both projects since they are both financially successful