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Investment cost (thousands) Annual revenue minus expense (thousands) IRR on total investment A $80 $13 16.2% $130 $40.5 31.2% C $230 $58 25.2% $380 $90.5 23.8% E $480 $112.5 23.4% 0 $650 $146.5 22.5%

Investment cost (thousands) Annual revenue minus expense (thousands) IRR on total investment A $80 $13 16.2% $130 $40.5 31.2% C $230 $58 25.2% $380 $90.5 23.8% E $480 $112.5 23.4% 0 $650 $146.5 22.5%

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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More Info Investment cost (thousands) Annual revenue minus expense (thousands) IRR on total investment A $80 $13 16.2% B $130 $40.5 31.2% Print C $230 $58 25.2% Done D $380 $90.5 23.8% E $480 $112.5 23.4% 0 F $650 $146.5 22.5%
Transcribed Image Text:More Info Investment cost (thousands) Annual revenue minus expense (thousands) IRR on total investment A $80 $13 16.2% B $130 $40.5 31.2% Print C $230 $58 25.2% Done D $380 $90.5 23.8% E $480 $112.5 23.4% 0 F $650 $146.5 22.5%
Six sites have been identified for a parking lot in downtown Blacksburg. Because the sites are plots of land, their salvage value and investment cost are identical. A 10-year study period has been specified, and the MARR is 19% per year. Which site should be chosen based on the IRR criterion? Click the icon to view the alternatives description.
Transcribed Image Text:Six sites have been identified for a parking lot in downtown Blacksburg. Because the sites are plots of land, their salvage value and investment cost are identical. A 10-year study period has been specified, and the MARR is 19% per year. Which site should be chosen based on the IRR criterion? Click the icon to view the alternatives description.
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