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Six sites have been identied for a parking lot in downtown Blacksburg. Because the sites are plots of land, their salvage value and investment cost
Six sites have been identied for a parking lot in downtown Blacksburg. Because the sites are plots of land, their salvage value and investment cost are identical. A 10-year study period has been specified, and the MARR is 19% per year. Which site should be chosen based on the IRR criterion? M ore Info 121 A B C D E F Investment cost $80 $130 $240 $390 $490 $650 (thousands) Annual revenue $13 $40.5 $58 $100.5 $122.5 $156.5 minus expense (thousands) IRR on total 16.2% 31.2% 24.2% 25.8% 25% 24.1% investment
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