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Determine the best option using the equivalent annuity method. Do your calculations by hand in your working document.   2) Determine the best option using the net present value method. Do your calculations by hand in your working document. The MARR = 12%.

Determine the best option using the equivalent annuity method. Do your calculations by hand in your working document.   2) Determine the best option using the net present value method. Do your calculations by hand in your working document. The MARR = 12%.

Essentials Of Investments
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
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1) Determine the best option using the equivalent annuity method. Do your calculations by hand in your working document.

 

2) Determine the best option using the net present value method. Do your calculations by hand in your working document. The MARR = 12%.

small Medium Large Investment ($) 1500 2000 5000 Operating costs $ / hour Revenue $ / hour Hours / year 35 50 76 55 75 100 1000 1100 1200 Economic life (years) 2 3 5
Transcribed Image Text:small Medium Large Investment ($) 1500 2000 5000 Operating costs $ / hour Revenue $ / hour Hours / year 35 50 76 55 75 100 1000 1100 1200 Economic life (years) 2 3 5
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