8) ROVNO Ltd. just invested $50 000 into a new local network. Services provided by the network will bring $15 000 per year in the next five years. The following information is given: real MARR = 10% %3D - expected annual inflation = 2% - the network will be sold for salvage after five years; its depreciation rate is 20% %3D Is this a good investment in terms of the internal rate of return?

8) ROVNO Ltd. just invested $50 000 into a new local network. Services provided by the network will bring $15 000 per year in the next five years. The following information is given: real MARR = 10% %3D - expected annual inflation = 2% - the network will be sold for salvage after five years; its depreciation rate is 20% %3D Is this a good investment in terms of the internal rate of return?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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