WebA project has estimated annual cash flows of $90,000 for three years and is estimated to cost $250,000. Assume a minimum acceptable rate of return of 10%. Using the following tables determine the (a) net present value of the project and (b) the present value index, rounded to two decimal places. WebFor the following three machines A,B, and C with the cash flows in the table below with MARR (Minimum Acceptable Rate of Return) of 10% (a) draw the cash flow diagram for each of the three machines, (b) calculate the present worth (Net Present Value, NPV) of using each of the three machines, and (c) from your calculation of the NPV for each of …
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WebDec 26, 2024 · What is the minimum acceptable rate of return? In business and engineering economics, the minimum acceptable rate of return is the minimum rate of return on a project that a company is willing to accept before starting the project, given its risk and the opportunity cost of forgoing other projects. WebFeb 7, 2024 · What rate of return is the insurance company offering? How do you calculate the rate of return with our calculator? In this case, when you set $100,000 as an initial … commander archenemy rules
Answered: A project has estimated annual net cash… bartleby
WebThe _____ is the minimum acceptable rate of return on an investment. a.required rate of return _____ are new requirements imposed by management, government, or some … WebThis ratio is just the Sharpe ratio, only using minimum acceptable return instead of the risk-free rate in the numerator, and using standard deviation of returns instead of standard deviation of excess returns in the denominator. ... which when adjusted by the period and expected rate of return per unit, gives a rate of return. The accuracy of ... WebMay 4, 2016 · The minimum acceptable rate of return (MARR) used in this evaluation was estimated as follows: MARR = inflation + risk (4) The inflation rate was set at 3%, based on the information provided by the Bank of Mexico [ 34 ], and the risk was fixed at 3% due to the low risk associated with this type of investment project [ 35 ]. dryer vent cleaning fishers indiana