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If the investment rate is 12%, the borrowing rate is 15%, and the MARR is 14%, what is the
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- Find the external rate of return (ERR) for the following project when the external reinvestment rate is $ = 10% (equal to the MARR). Is this an acceptable project?Using a MARR of 12%, find the external rate of return (ERR) for the following cash flow. Is this project economically attractive?Consider an investment project with the following net cash flows: What would be the value of X if the project's IRR is 10%?
- Consider the following sets of investment projects: Compute the equivalent annual worth of each project at i = 10%, and determine the acceptability of each project.What is the ERR for this project? Assume that = 12% and MARR = 20% per year. Is this project considered to be profitable? What is the simple payback period?Calculate the ROR of the project Rate of interest = 10%
- You are looking at an investment that will pay you $22,995 in year 2, $43,270 in year 4 and $41,525 in year 6. If your required return is 8.73%, what is the most you should pay for the investment? (In other words, how much is the project worth today?)Suppose you considering investing $34 to earn $4.8 every year for forever. If the annual interest rate is 6.2%, what is the NPV of this project? Suppose you considering investing $24 to earn $6.6 every year for forever. If the annual interest rate is 6.5%, what is the NPV of this project?Refer to the problem given in answering the following questions:(a) How long does it take to recover the investment?(b) If the firm's interest rate is 15%, what would be the discounted-paybackperiod for this project?
- a). When ε= 15% and MARR = 20% per year, determine whether the project (whose total cash flow diagram is shown below) is acceptable using ERR b). What is the IRR of the project ?What is the NPV of a project with an initial investment of $100, a cash flow in one year of $105, and a discount rate of 10 percent?A project has a rate of return of 23%. What is the future value of the project if the investment today is $400?