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A company uses a MARR of 12%. The forecast of expenses for the next year (year 1), in then-current thousands of USS, and inflation rate
A company uses a MARR of 12%. The forecast of expenses for the next year (year 1), in then-current thousands of USS, and inflation rate are: Raw materials: 10,000, and expected inflation of 4% per year in the following 5 years. Rent: 120, and expected inflation of 3% per year in the following 5 years. Utilities: 6000 and expected inflation of 2% per year in the following 5 years. Considering the original MARR and the average inflation rate of costs, what is the real MARR? (use two decimals, format XXX no%slgn)
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