"What ROR will an entrepreneur make over a 10 year project period if he invested $90,000 (time 0) to produce portable X-volt air compressors? His estimated costs are $20,000 per year with estimated revenue of $40,000 per year. (Hint: You can solve with IRR function in Excel) ROR= 122.0% ROR=-100.0% ROR- 18.0% ROR= 14.9% Two mutually exclusive cost alternatives, Machine A and Machine B, are being evaluated. Given the following time events and incremental cash flow, if the MARR is 12% per year, which alternative (Machine A or Machine B) should be selected on the basis of rate of return? Assume Machine B requires the extra $20,000 initial investment. (Hint: You can solve with IRR function in Excel) Year Incremental Year Cash Flow $(Machine B-A) -20.000 0 1-4 2.300 5 - 7 5,200 8 6,500 The "Incremental ROR" is less than the MARR, so select Machine B. The "Incremental ROR" is less than the MARR, so select Machine A. Select neither A nor B and go with DN The "Incremental ROR" is more than the MARR, so select Machine B. **As part of the STEM/STEAM strategic plan, the Georgia Department of Education decided to fund a pilot program to build computational literacy in elementary schools in the Atlanta metro area. The first cost is $250,000 now, and an additional cost of $80,000 every 8 years forever. The perpetual equivalent annual worth (in years 1 through infinity) of this program at an interest rate of 15% per year is equal to: **The answers presented below were calculated using the appropriate factors from interest tables including all their decimal places** -$24,040 -$ 54,849 -$117,500 -$43,328