Unformatted text preview: If the company’s MARR is 15%, use the Present Worth Analysis method to assess whether to go ahead with the plan. 3. A construction firm needs a particular type of equipment for a period of 3 years. The firm can either purchase the equipment for $25,000, or rent it for $10,000 per year. The equipment has no salvage value for the firm at the end of its use. If the firm’s MARR is 12% per year, determine which alternative should be accepted, using the annual equivalence method. 4. Textbook, p. 280, Problem 7.15(a) Consider the following project’s cash flow: Year n Net Cash Flow-$2,000 1 $800 2 $900 3 X Assume the project’s Internal Rate of Return ( IRR ) is 10% [per year]. Find the value of X ....
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- Fall '09
- Net Present Value, Internal rate of return, s MARR, decision making homework