FOR QUESTION NUMBER 21 AND 22 Determine feasibility of the project using IRR and ERR of the project. Is it acceptable? Use &= 15% and MARR =20%. Investment Capital PhP 10,000 Expected life 5 years Market Value -1,000 Annual Receipts 8,000 Annual Expenses 4,000 21. Determine the IRR value of this project, is it acceptable? a. Yes, IRR = 0.3062 b. No, IRR= 0.1981 c. Yes, IRR = 0.3264 d. No, IRR 0.1865 22. Determine the ERR value of this project, is it acceptable? a. No, ERR 0.1810 b. No, ERR= 0.1053 c. Yes, ERR = 0.2380 d. Yes, ERR = 0.2103

FOR QUESTION NUMBER 21 AND 22 Determine feasibility of the project using IRR and ERR of the project. Is it acceptable? Use &= 15% and MARR =20%. Investment Capital PhP 10,000 Expected life 5 years Market Value -1,000 Annual Receipts 8,000 Annual Expenses 4,000 21. Determine the IRR value of this project, is it acceptable? a. Yes, IRR = 0.3062 b. No, IRR= 0.1981 c. Yes, IRR = 0.3264 d. No, IRR 0.1865 22. Determine the ERR value of this project, is it acceptable? a. No, ERR 0.1810 b. No, ERR= 0.1053 c. Yes, ERR = 0.2380 d. Yes, ERR = 0.2103

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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FOR QUESTION NUMBER 21 Determine feasibility of the project using IRR and ERR of the project. Is it acceptable? Use &= 15% and MARR =20%. Investment Capital PhP 10,000 Expected life 5 years Market Value -1,000 Annual Receipts 8,000 Annual Expenses 21. Determine the IRR value of this project, is it acceptable? a. Yes, IRR = 0.3062 b. No, IRR= 0.1981 4,000 c. Yes, IRR = 0.3264 d. No, IRR = 0.1865
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