A project has an initial cost of $50 000, net annual cash inflows of $20 000, and a $2 000 salvage value after five years. Which of the following gives the project's approximate external rate of return (i*) if MARR = 10%? -50 000(P/F, i*, 5) +20 000(P/A, i*, 5) + 2 000(F/P, i*, 5) = 0 -50 000(F/P, i*, 5) + 20 000(F/A, i*, 5) + 2 000 = 0 -50 000(F/P, i*, 5) + 20 000(F/A, 10, 5) + 2 000 = 0 O-50 000(F/P, i*, 5) + 20 000(P/A, i*, 5) + 2 000 = 0

A project has an initial cost of $50 000, net annual cash inflows of $20 000, and a $2 000 salvage value after five years. Which of the following gives the project's approximate external rate of return (i) if MARR = 10%? -50 000(P/F, i, 5) +20 000(P/A, i, 5) + 2 000(F/P, i, 5) = 0 -50 000(F/P, i, 5) + 20 000(F/A, i, 5) + 2 000 = 0 -50 000(F/P, i, 5) + 20 000(F/A, 10, 5) + 2 000 = 0 O-50 000(F/P, i, 5) + 20 000(P/A, i*, 5) + 2 000 = 0

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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