What is the minimum attractive rate of return

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Reference no: EM132165695

Question -

(a) If the following public projects are mutually exclusive and the MARR is 10%, which one(s) should be done? Why?

(b) If the public projects are not mutually exclusive, but the budget is $60K, which one(s) should be done? What is the minimum attractive rate of return?

Project

First Cost

PW at 10% of Benefits

IRR

B/C Ratio

A

-$10K

$14,084

23.0%

1.30

B

-20K

28,508

22.0

1.40

C

-30K

38,042

17.0

1.70

D

-20K

27,665

19.0

1.35

E

-10K

13,673

18.0

1.56

Reference no: EM132165695

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