Goal of the Exercise is to be Familiar with the MARR. Minimum Attractive Rate of Return (MARR) is just the lowest internal rate of return the organization would consider to be a good investment   A new LED lighting system will save 10,000JD/year. How much can I pay and still get a 15% rate of return? Life = 6 years. P = ?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 5TP: Giorgio Co. is looking at an investment project with an internal rate of return of 10.8%. The...
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Goal of the Exercise is to be Familiar with the MARR.

Minimum Attractive Rate of Return (MARR) is just the lowest internal rate of return the organization would consider to be a good investment

 

A new LED lighting system will save 10,000JD/year.

How much can I pay and still get a 15% rate of return? Life = 6 years.

P = ?

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