Assume $100,000 is available for investment and MARR =10% per year. If alternative A would earn 25% per year on inveatment of 60,000 and B would be earn 20% per year on investment of 75000 the weighted average(ROR) of A

Cornerstones of Cost Management (Cornerstones Series)
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Chapter19: Capital Investment
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Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...
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Assume $100,000 is available for investment and MARR =10% per year. If alternative A would earn 25% per year on inveatment of 60,000 and B would be earn 20% per year on investment of 75000 the weighted average(ROR) of A

Assume $100,000 is avalable for investment and MARR 10% per year. if alternative A would earn 25% per year on investment of $60.000, and 8 would narn 20% per year on investment
of $75,000, the weighted averages (overall ROR) for As
196
18%
17.50%
16.50%
Transcribed Image Text:Assume $100,000 is avalable for investment and MARR 10% per year. if alternative A would earn 25% per year on investment of $60.000, and 8 would narn 20% per year on investment of $75,000, the weighted averages (overall ROR) for As 196 18% 17.50% 16.50%
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