Web7 feb. 2024 · The rate of return definition In finance, a return is a profit on an investment measured either in absolute terms or as a percentage of the amount invested. Since the … WebTranscribed Image Text: Each of the five alternatives has 20-year useful lives. If the MARR is 8%, use incremental rate of return analysis to determine which alternative should be …
Under what conditions should the External Rate of Return (ERR) be …
WebTo begin with, this study considered the project has a life expectancy of 20 years, a 100% TCI was spent in year 0, and the minimum acceptable rate of return (MARR) was set at 16%, which indicates ... Web(PW), annual worth (AW), future worth (FW), Economic rate of return (ERR), benefit -cost ratio (B/C), Internal Rate of Return (IRR) and Minimum Attractive Rate of Return (MARR). The results of these methods usually deliver reliable results to infer an optimal decision. The usages of these methods differ based on the preferences of the decision- circle the correct word or phrase
Minimum acceptable rate of return - Wikipedia
The hurdle rate is usually determined by evaluating existing opportunities in operations expansion, rate of return for investments, and other factors deemed relevant by management. As an example, suppose a manager knows that investing in a conservative project, such as a bond investment or another project with no risk, yields a known rate of return. When analyzing a new project, the manager may use the conservative project's rate of return as the MARR. The mana… Web1 mei 2013 · Rate of Return Vs Minimum Attractive Rate of Return Engineer Clearly 17.6K subscribers Subscribe 41K views 9 years ago Rate of Return Vs Minimum Attractive Rate of Return (ROR vs … WebOption A - It is not appropriate because the interest rate equal to the bank's interest rate represents an opportunity cost. Option B - The acceptance or rejection of an investment is often based on the ROR (required rate of return) of investors. This rate is higher than the MARR. Option C - The MARR value for each project will vary. circle the clothes worksheet