Engineering Economy (16th Edition) - Standalone book
16th Edition
ISBN: 9780133439274
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 5, Problem 60P
- a. Calculate the
IRR for each of the three cash-flow diagrams that follow. Use EOY zero for (i) and EOY four for (ii) and (iii) as the reference points in time. What can you conclude about “reference year shift’ and “proportionality” issues of the IRR method? - b. Calculate the PW at MARR = 10% per year at EOY zero for (i) and (ii) and EOY four for (i) and (iii). How do the IRR and PW methods compare?
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Chapter 5 Solutions
Engineering Economy (16th Edition) - Standalone book
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