2 engineeing finm is conidering the fallouingmutualy exiluive panjetsEoY Pioiect Al Project Az Project Az Projec Aq-2500 -1200-3600 -200012001400150017002000(6004007008502.3.1000Which project shoold be selected based anIRR assaSumingMARR315%.payen.Please show all the steps and formulas requiredto understand the concept .

An engineering firm is considering the following mutually exclusive projects Which project should be…

EOY Froject Ai Project Az Kroject Az Project A4 -2500 -1200 -3600 -2000 1700 1200 1400 1500 800 2000 t00 1600 400 2. 3. 000 850 Which. project shoold be selected baced an IRR assuming MARR = 15%. paryenr. %3D

EOY Froject Ai Project Az Kroject Az Project A4 -2500 -1200 -3600 -2000 1700 1200 1400 1500 800 2000 t00 1600 400 2. 3. 000 850 Which. project shoold be selected baced an IRR assuming MARR = 15%. paryenr. %3D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

engineeing finm is conidering the fallouing
mutualy exiluive panjets
EoY Pioiect Al Project Az Project Az Projec Aq
-2500 -1200
-3600 -2000
1200
1400
1500
1700
2000
(600
400
700
850
2.
3.
1000
Which project shoold be selected based an
IRR ass
aSuming
MARR
315%.
payen.
Please show all the steps and formulas required
to understand the concept .

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For this question, use the following information: A В D E Initi al Investment -3,300 -6,500 -5,000 -8,000 -4,000 Annual Benefit 700 1,200 900 1,400 850 Salvage Value 100 400 300 1,000 200 Useful life 10 10 10 10 10 IRR 16.85% 13.49% 12.86% 12.67% 17.01% E-A C-A В-А D-A D-B Delta IRR 17.74% 4.63% 9.92% 9.76% 9.47% С-Е В-Е D-E В-С D-C Delta IRR -7.43% 7.50% 8.31% 15.52% 12.38% Which alternate should be selected if MARR is 9% (mutually exclusive)?
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