You ase determing your organizations MARR using the oPPortunity cost aPpronch. Your organization has $50,000 available to invest and the following invest ment options. What is your organizations oPPortunity cost of capital (implied MARR)? Project Initial Cost ($K) IRR A 12,000 10.25 % 18,000 17% 7,000 18% 17,000 4.5% E 22,000 18%

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.3.1P
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the
OPPortunity cost of capital
You ase determing your organizations MAAR using
aPpronch. Your organization has $50,000 available to invest and the following
invest ment options. What is your organizations oPPortunity cost of capital
(implied MARR)?
Project
Initial Cost ($K)
IRR
A
12,000
10.25 %
18,000
17%
7,000
18%
17,000
4.5%
E
22,000
18%
Transcribed Image Text:the OPPortunity cost of capital You ase determing your organizations MAAR using aPpronch. Your organization has $50,000 available to invest and the following invest ment options. What is your organizations oPPortunity cost of capital (implied MARR)? Project Initial Cost ($K) IRR A 12,000 10.25 % 18,000 17% 7,000 18% 17,000 4.5% E 22,000 18%
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