Authorities are planning to invest in new cultural program

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Reference no: EM131563082

State authorities are planning to invest in a new cultural program, however, they have two alternatives and they need to choose on of these two (Do nothing is NOT an option). Alternative 1 requires an initial onvestment of $150,000. Authorites expect incomes for $30,000 at the first year and an increment of $15,000 per year year during the next 4 years, Alternative 2 requires an initial investment of $75,000 and will generate incomes of $20,000 during the next 5 years if the project. Assume MARR is 12%.

Choose between alternatives using IRR.

Reference no: EM131563082

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