Question
Your company is considering investing in four projects. Assume a life of 10 years and MARR 17% per year to determine which alternative is best
Your company is considering investing in four projects. Assume a life of 10 years and MARR 17% per year to determine which alternative is best using an incremental ROR
Please show how to solve using excel. Thanks!
| Project A | Project B | Project C | Project D | |
| Initial cost | -$1,500,000.00 | -$3,000,000.00 | -$2,000,000.00 | -$1,800,000.00 |
| AOC ($/year) | -$400,000.00 | -$120,000.00 | -$150,000.00 | -$170,000.00 |
| Revenue ($/year) | $700,000.00 | $800,000.00 | $580,000.00 | $570,000.00 |
| Salvage value | $300,000.00 | $600,000.00 | $400,000.00 | $360,000.00 |
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
