The interest rate used in computing the project balances

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Reference no: EM13815766

Consider the following project balances for a typical investment project with the service life of four years:

n An($) Project Balance ($)

0 -1000 -1000

1 ( ) -1300

2 ( ) -600

3 2160 1500

4 ( ) 4650

Determine the interest rate used in computing the project balances.

Construct the original cash flows of the project.

Would this project be acceptable at a MARR of 12%, compounded annually? Give reason(s)

Reference no: EM13815766

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