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A cash flow sequence has a receipt of $30,000 today, followed by a disbursement of $21,000 at the end of this year and again next year, and then a receipt of $10,000 three years from now. The MARR is 6 percent. a. What is the ERR for this set of cash flows? b. What is the approximate ERR for this set of cash flows? c. Would a project with these cash flows be a good investment? a. The ERR is %. (Round to two decimal places as needed.) b. The approximate ERR is %. (Round to two decimal places as needed.) c. A project with these cash flows ▼be a good investment because the ERR and approximate ERR are both the MARR.

A cash flow sequence has a receipt of $30,000 today, followed by a disbursement of $21,000 at the end of this year and again next year, and then a receipt of $10,000 three years from now. The MARR is 6 percent. a. What is the ERR for this set of cash flows? b. What is the approximate ERR for this set of cash flows? c. Would a project with these cash flows be a good investment? a. The ERR is %. (Round to two decimal places as needed.) b. The approximate ERR is %. (Round to two decimal places as needed.) c. A project with these cash flows ▼be a good investment because the ERR and approximate ERR are both the MARR.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A cash flow sequence has a receipt of $30,000 today, followed by a disbursement of $21,000 at the end of this year and again next year, and then a receipt of $10,000 three years from now. The MARR is 6 percent. a. What is the ERR for this set of cash flows? b. What is the approximate ERR for this set of cash flows? c. Would a project with these cash flows be a good investment? a. The ERR is %. (Round to two decimal places as needed.) b. The approximate ERR is %. (Round to two decimal places as needed.) c. A project with these cash flows be a good investment because the ERR and approximate ERR are both the MARR.
Transcribed Image Text:A cash flow sequence has a receipt of $30,000 today, followed by a disbursement of $21,000 at the end of this year and again next year, and then a receipt of $10,000 three years from now. The MARR is 6 percent. a. What is the ERR for this set of cash flows? b. What is the approximate ERR for this set of cash flows? c. Would a project with these cash flows be a good investment? a. The ERR is %. (Round to two decimal places as needed.) b. The approximate ERR is %. (Round to two decimal places as needed.) c. A project with these cash flows be a good investment because the ERR and approximate ERR are both the MARR.
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