The MARR is often decomposed into the sum of the following components (range of typical values shown): Traditional inflation-free rate of interest for risk-free loans: 3-5% Expected rate of inflation: 5% The anticipated change in the rate of inflation, if any, over the life of the investment: Usually taken at 0% The risk of defaulting on a loan: 0-5% The risk profile of a particular venture: 0-50% and higher (All of Above, None of the above, All of above except d and e) Give Reason: _________________ For a Single Project Evaluation, decision rule is If Present Worth(i) > 0, accept the investment If Present Worth(i) = 0, remain indifferent If Present Worth(i)