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Question 9.P.4: Solve Problem 9.3 by an ROR calculation....

Solve Problem 9.3 by an ROR calculation.

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\begin{matrix} proposal\ A & (A/P,\ i^*_A,\ 4)\ =\ \frac{\hspace{1 cm}}{}\ =\ 0.30000 \\ & 7\%<i_A^*<\ 8\% \ \text{(from Appendix A)} \\[0.5 cm] proposal\ B & (A/P,\ i^*_B,\ 4)\ =\frac{\hspace{1 cm}}{}\ =\ 0.40000 \\ & 20\%<i_B^*<\ 25\% \ \text{(from Appendix A)} \\[0.5 cm] proposal\ C & (A/P,\ i^*_C,\ 4)\ =\ \frac{\$ 35~000}{\$ 100~000}\ =\ 0.35000 \\ & 12\%<i_C^*<\ 15\% \ \text{(from Appendix A)} \end{matrix}

All three ratesof return are smaller than the target MARR (25%), and so none of the projects is acceptable.

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