glasskerfu

2021-08-23

The interest rate for evaluating the project.

Given: Project B has a cost of $50,000.

Annual benefit is $9,000.

Given: Project B has a cost of $50,000.

Annual benefit is $9,000.

Khribechy

Skilled2021-08-24Added 100 answers

Concept used:

Write the formula to calculate the interest rate.

Here, the project cost is P, annual benefit is A, the time period is n and interest rate is i.

Table giving the example risk adjusted MARR values in manufacturing.

Calculation:

Substitute $50,000 for P $9,000 for A and 10 years for n in Equation (I).

As

The new product in the new market should be accepted as proposed.

Conclusion:

Interest rate for evaluating project B is

The new product in the new market should be accepted as proposed.

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