Which investment should be chosen

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Reference no: EM13150199

Two investments are being considered by a small Wall Street investment bank. They both require an intial investment bank. They both require an intial investment of $500,000. The first year with annual benefit at $35,000 the first year with annual increases of 25% per year for 10 years. The second provides an annual benefit of $40,000 the first year with annual increases of $15,000 per year for 10 years. Determine a) The ROR's of each investment b) The net present worth of each investment for a MARR = 12% c) The equivalent uniform annual profit of each investment for a MARR = 12% d) Which investment should be chosen?

Reference no: EM13150199

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