Determine the rate of return (ROR) for the following investments. a) Solve using iteration and the compound interest tables: 80 80 80 80 80 80 Year Cash flow 200 b) Solve using any method you choose: 0 -1,000 200 1 0 200 2 +300 3 4 +300 +300 5 +300

Determine the rate of return (ROR) for the following investments. a) Solve using iteration and the compound interest tables: 80 80 80 80 80 80 Year Cash flow 200 b) Solve using any method you choose: 0 -1,000 200 1 0 200 2 +300 3 4 +300 +300 5 +300

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

I need solve this question in Engineering economics

Determine the rate of return (ROR) for the following investments.
a) Solve using iteration and the compound interest tables:
80 80 80 80 80
474
200
200
b) Solve using any method you choose:
Year
Cash flow
0
-1,000
1
0
80
200
2
+300
3 4 5
+300 +300
+300

Application of economic techniques to the evaluation of design and engineering alternatives. The role of engineering economics is to assess the appropriateness of a given project, estimate its value, and justify it from an engineering standpoint.

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Step 3: Determine IRR for part b:

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