A B C D E F Investment $100 $150 $250 $400 $500 S700 cost (thousands) Annual $15 S37.5 $50 $92.5 $112.5 $142.5 revenue minus expense (thousands) IRR on total 15% 25% 20% 23.1% 22.5% 20.4% investment
A B C D E F Investment $100 $150 $250 $400 $500 S700 cost (thousands) Annual $15 S37.5 $50 $92.5 $112.5 $142.5 revenue minus expense (thousands) IRR on total 15% 25% 20% 23.1% 22.5% 20.4% investment
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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 18% per year.Which site should be chosen based on the
Transcribed Image Text:A
B
C D E
F
Investment
$100 $150 $250 $400 $500 S700
cost (thousands)
Annual
$15 S37.5 $50 $92.5 $112.5 $142.5
revenue minus
expense
(thousands)
IRR on total
15% 25% 20% 23.1% 22.5% 20.4%
investment
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