Explain the appropriate rate of return method

Reference no: EM132079919

Question: Three construction jobs are being considered by Upright Construction (see the following table). Each is characterized by an initial deposit paid by the client to Upright, a yearly cost incurred by Upright at the end of each of three years, and a final payment to Upright by the client at the end of three years. Upright has the capacity to do only one of these contracts. Use an appropriate rate of return method to determine which it should do. The company's MARR is 10 percent. Construction job information is as follows:

Job Deposit ($) Cost Per Year ($) Final Payment ($)

1 100,000 75,000 200,000

2 150,000 100,000 230,000

3 175,000 150,000 300,000

Reference no: EM132079919

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