Which one of the projects should you accept

Reference no: EM131900184

Problem

1. A successful physician has invested $800,000 cash in a rental apartment house. If he has a MARR of 10%, how much should he charge for rent per month to recover his investment in 10 years?

2. You have the option of choosing between the following two projects.

a. Initial investment $700K, annual income $400K

b. Initial investment $ 1,600K, annual income $600K The life of project a is five years and that of project b is ten years. If you have a MARR of 30%, which one of the projects should you accept?

Reference no: EM131900184

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