Calculate the internal rate of return .

Question

Want to see the full answer?

Answer 1

Question

Chapter 6, Problem 12P

To determine

Calculate the internal rate of return.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

A new highway is to be constructed. Design A calls for a concrete pavement costing $85 per foot with a 16-year life; three paved ditches costing $4 per foot each; and four box culverts every mile, each costing $8,000 and having a 16-year life. Annual maintenance will cost $1,700 per mile; the culverts must be cleaned every four years at a cost of $400 each per mile. Design B calls for a bituminous pavement costing $40 per foot with a 8-year I four sodded ditches costing $1.45 per foot each; and two pipe culverts every mile, each costing $2,200 and having a 8-year life. The replacement culverts will cost $2,500 each. Annual maintenance will cost $2,600 per mile; the culverts must be cleaned yearly at a cost of $220 each per mile; and the annual ditch maintenance will cost $1.65 per foot per ditch. Compare the two designs on the basis of equivalent worth per mile for a 16-year period. Find the most economical design on the basis of AW and PW if the MARR is 8% per year. Click the icon to…

Find both for design A and B then decide which one is the most economical, thank you.

A new highway is to be constructed. Design A calls for a concrete pavement costing $90 per foot with a 12-year life; two paved ditches costing $4 per foot each; and two box culverts every mile, each costing $7,000 and having a 12-year life. Annual maintenance will cost $1,700 per mile; the culverts must be cleaned every three years at a cost of $550 each per mile. Design B calls for a bituminous pavement costing $40 per foot with a 6-year life; three sodded ditches costing $1.50 per foot each; and three pipe culverts every mile, each costing $2,100 and having a 6-year life. The replacement culverts will cost $2,350 each. Annual maintenance will cost $2,600 per mile; the culverts must be cleaned yearly at a cost of $230 each per mile; and the annual ditch maintenance will cost $1.30 per foot per ditch. Compare the two designs on the basis of equivalent worth per mile for a 12-year period. Find the most economical design on the basis of AW and PW if the MARR is 6% per year. Click the…