0 years, and the sponsoring agency’s MARR is 11% per year. Annual benefits to the public have been estimated by an advisory committee and are shown below. Use the IRR method to select the best jogging track. Note: Show final answer in percentage value. Limit your answer to one decimal place. Ex: 12.5% Answer the following: IRR Alternative C = Blank 1% IRR Alternative D = Blank 2%
0 years, and the sponsoring agency’s MARR is 11% per year. Annual benefits to the public have been estimated by an advisory committee and are shown below. Use the IRR method to select the best jogging track. Note: Show final answer in percentage value. Limit your answer to one decimal place. Ex: 12.5% Answer the following: IRR Alternative C = Blank 1% IRR Alternative D = Blank 2%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Four mutually exclusive projects are being considered for a new two-mile jogging track. The life of the track is expected to be 80 years, and the sponsoring agency’s MARR is 11% per year. Annual benefits to the public have been estimated by an advisory committee and are shown below. Use the
Note: Show final answer in percentage value. Limit your answer to one decimal place. Ex: 12.5%
Answer the following:
IRR Alternative C = Blank 1%
IRR Alternative D = Blank 2%
The Preferred Alternative (Write only the letter if A,B,C or D )= Blank 3
Transcribed Image Text:Initial Cost
Annual benefits
IRR
A
$62,000
$10,000
16.1%
B
$52,000
$8,000
15.4%
C
$150,000
$25,000
D
$55,000
$7,800
?
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