Question
Zhe develops truss analysis software for civil engineers. He has the opportunity to contract with at most one of two clients who have approached him
Zhe develops truss analysis software for civil engineers. He has the opportunity to contract with at most one of two clients who have approached him with development proposals. One contract pays him $15 000 immediately and then $22 000 at the end of the project three years from now. The other possibility pays $20 000 now and $5000 at the end of each of the three years. In either case, his expenses will be $10 000 per year. For a MARR of 10 percent, which project should Zhe accept? Use an appropriate rate of return method.
It is asking using IRR and ERR.
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