Project net present worth in after-tax current dollars

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Reference no: EM131927214

MARRs are:

• Before-taxes with inflation = 10%

• Before-taxes without inflation (inflation-free) = 8%

• After-taxes with inflation = 5%

• After-taxes without inflation (inflation free) = 3%

1. The MARR required for the calculation of the project’s Net Present Worth (NPW) in after-tax current (actual) dollars is

a) 10%; b) 8%; c) 5%; d) 3%.

2. The MARR required for the calculation of the project’s Annual Equivalent Worth (AEW) in before-tax constant dollars is

a) 10%; b) 8%; c) 5%; d) 3%.

3. If you were the owner of this project, the MARR used to determine the project’s impact on the after-tax purchasing power of your investment would be

a) 10%; b) 8%; c) 5%; d) 3%.

Reference no: EM131927214

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