Rincon, LLC is considering a project that will require an initial investment of $750,000 with estimated net income of $135,000 per year for 10 years. (a) Determine the IROR, PI, and PW values at MARR = 12% per year. (b) For which of these measures is the project economically justified? (c) Reflect on the answers above and the breakeven i*. Is there any MARR value that will cause any of the three measures to result in different conclusions about the economic viability of the project? Explain your answer.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Rincon, LLC is considering a project that will require
an initial investment of $750,000 with estimated
net income of $135,000 per year for
10 years. (a) Determine the IROR, PI, and PW values
at MARR = 12% per year. (b) For which of
these measures is the project economically justified?
(c) Reflect on the answers above and the
breakeven i*. Is there any MARR value that will
cause any of the three measures to result in different
conclusions about the economic viability of the
project? Explain your answer.

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