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Question-2 (30 pts) A project generates a revenue of 60.000 $ today and 50.000 $ after 2 years without any initial investment. In addition to
Question-2 (30 pts) A project generates a revenue of 60.000 $ today and 50.000 $ after 2 years without any initial investment. In addition to these revenues, project generates a final revenue of 40.000 $ after 5 years (from today). On the other hand, the costs of the project are as follows: 40.000 $ after 1 year, 70.000 $ after 3 years and 50.000 $ after 4 years. There is no cost for the 4th year. If MARR is 9%, investment rate iis 10% and borrowing rate i.is 8% determine external ROR: a) Using modified ROR (MIRR) b) Return on investment capital (ROIC)
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